Market Newsdesk

July 22, 2021 7:48 am

CBNK Reports Diluted EPS of $0.68, ROAA of 1.90%, and ROAE of 22.36% for 2Q2021

ROCKVILLE, Md., July 22, 2021 (GLOBE NEWSWIRE) — Capital Bancorp, Inc. (the “Company”) (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the “Bank”), today reported net income of $9.6 million, or $0.68 per diluted share, for the second quarter of 2021. By comparison, net income was $4.8 million, or $0.34 per diluted share, for the second quarter of 2020. Return on average assets (“ROAA”) was 1.90% for the second quarter of 2021, compared to 1.19% for the same period in 2020. Return on average equity (“ROAE”) was 22.36% for the second quarter of 2021, compared to 13.70% for the same period in 2020.

“Capital Bancorp’s second quarter results once again demonstrated the strength of our diversified business model that performs well in a variety of economic environments,” said Steven Schwartz, Chairman of the Board of the Company. “The strength of our earnings has made it possible to continue to invest in the business while delivering attractive returns to our shareholders.”

“Growth has accelerated, leading to another strong and balanced quarter. The continued strong performance by all of our business lines emphasizes the momentum we have built through investment and strategic decisions at Capital Bank,” said Ed Barry, CEO of the Company. “OpenSky’s^® performance remains above expectations as consumers increasingly recognize the value of our product offerings. The Commercial Bank continues to grow and take advantage of dislocations in the market. Capital Bank Home Loans delivered another solid quarter despite a rapidly cooling origination environment. We believe we have laid the foundation for continued profitable growth and look forward to leading the market with our technology-led capabilities.”

Second Quarter 2021 Highlights

Capital Bancorp, Inc.

Strong Earnings – Continued strong performance by the Commercial Bank, Capital Bank Home Loans and OpenSky^® contributed to another quarter of solid results. In the second quarter of 2021, net income doubled to $9.6 million from $4.8 million in the second quarter of 2020. Earnings were $0.68 per diluted share for the three months ended June 30, 2021 compared to $0.34 per share for the same period last year.
Industry-Leading Performance Ratios – Return on average assets (“ROAA”) and return on average equity (“ROAE”) were 1.90% and 22.36%, respectively, for the three months ended June 30, 2021 compared to 1.19% and 13.70%, respectively, for the three months ended June 30, 2020.
Expanded Net Interest Margin – The net interest margin was 5.47% for the three months ended June 30, 2021, which is an increase of 75 basis points compared to 4.72% for the same three month period last year.
Robust Capital Levels – As of June 30, 2021, the Company reported a common equity tier 1 capital ratio of 13.94% and an allowance for loan and lease losses (“ALLL”) to total loans ratio of 1.51%, or 1.73% excluding Small Business Administration Payroll Protection Program (“SBA-PPP”) loans. During the preceding twelve months, book value per common share grew 25.1 percent to $12.87 at June 30, 2021 compared to $10.28 per share at June 30, 2020.

Commercial Bank

Continued Portfolio Loan Growth – Portfolio loans, excluding credit cards, increased by $148.0 million to $1.3 billion at June 30, 2021 compared to June 30, 2020, and by $45.6 million, or 14.8 percent annualized, compared to March 31, 2021. The year over year growth was mainly due to a 29.6 percent increase in commercial real estate loans of $107.7 million, an 11.0 percent increase in commercial and industrial loans of $15.7 million, and a 5.1 percent increase in construction real estate loans of $10.9 million.
Further Growth in Core Deposits and Reduced Cost of Funds – Noninterest bearing deposits increased 46.9 percent compared to June 30, 2020, and by 29.2 percent annualized, compared to March 31, 2021. The $264.3 million year over year increase, and the $56.4 million increase over the prior quarter was primarily due to increases in OpenSky^® and SBA-PPP loan-related deposits. At June 30, 2021, noninterest bearing deposits represented 43.2% of total deposits compared to 41.4% at March 31, 2021 and 35.1% at June 30, 2020. Overall, the cost of interest bearing liabilities was reduced 73 basis points, from 1.38% for the quarter ended June 30, 2020 to 0.65% for the quarter ended June 30, 2021. This reduction was primarily due to the Bank’s ongoing strategic initiative to improve the deposit franchise.
Stable Credit Metrics – Non-performing assets (“NPAs”) remained steady at 0.54% of total assets at June 30, 2021 compared to 0.50% at June 30, 2020. The provision for loan losses declined from $2.5 million for the three months ended June 30, 2020 to $781 thousand in the second quarter of 2021.
SBA-PPP Loans
– SBA-PPP loans, net of $5.3 million in unearned fees, totaled $202.8 million at June 30, 2021 which was comprised of $74.1 million in 2020 originations and $128.7 million originated thus far in 2021. As of June 30, 2021, the Company has obtained forgiveness for $169.0 million of SBA-PPP loans, through the SBA.

Capital Bank Home Loans

Strong Mortgage Performance – New home purchase volume increased to 50.6% of total originations for the second quarter, up from 31.2% during the second quarter of 2020 as a result of a strategic shift to emphasize the financing of home purchases over the refinancing of existing mortgages. Mortgage loan originations were $266 million and mortgage banking revenue was $5.3 million for the three months ended June 30, 2021 compared to $315 million in originations and $7.3 million in revenue for the same three month period of the previous year.
Steady Gain on Sale Margin – The second quarter 2021 gain on sale margin was 2.79%, compared to 2.97% for the same quarter last year.

OpenSky

^®

Continued Growth in OpenSky
^®
Accounts – OpenSky^® increased customer accounts by 10.2 percent with net growth during the quarter of 65 thousand accounts, driving total accounts to 708 thousand at June 30, 2021.
Robust Growth in OpenSky
^®
Loans and Deposits – OpenSky^®loan balances increased by $68.3 million to $121.4 million compared to $53.1 million in the second quarter of 2020. Corresponding deposit balances increased 83.3 percent or $109.9 million from $131.9 million at June 30, 2021 to $241.7 million at June 30, 2021. This strong growth in loans and deposits appears to indicate that consumer behaviors are returning to historical trends.

Year to Date 2021 Highlights

Capital Bancorp

Diversified Businesses Drive Net Income – Net income for the six months ended June 30, 2021 increased 142.1 percent to $18.6 million, or $1.32 per diluted share, from $7.7 million, or $0.55 per diluted share for the six months ended June 30, 2020. Continued strong operating results demonstrate the advantages of the Bank’s diversified business lines that are, in certain respects, uncorrelated across economic cycles.
Elevated Performance Ratios – Improved earnings supported ROAA and ROAE of 1.88% and 22.33%, respectively, for the six months ended June 30, 2021 compared to 1.03% and 11.17%, respectively, for the six months ended June 30, 2020.
Expanded Net Interest Margin – For the six months ended June 30, 2021, net interest margin (“NIM”) increased by 40 basis points to 5.32% compared to 4.92% for the six months ended June 30, 2020. The improvement in NIM was driven by an increase in average loans outstanding, including SBA-PPP and OpenSky^®, improving loan yields, and lower funding costs.
Efficiency Ratio Continues to Improve – Increased revenue and active expense management improved the efficiency ratio to 66.73% for the six months ended June 30, 2021 compared to 69.32% for the same six month period in the prior year.
Balance Sheet Growth – Total assets increased $275.3 million, or 14.7 percent, during the six months ended June 30, 2021. The growth of earning assets on the balance sheet consisted of increases in cash equivalents of $161.8 million, portfolio loans of $76.3 million, OpenSky^® loans of $19.2 million, investments available for sale of $60.7 million, and Bank Owned Life Insurance (“BOLI”) of $35.0 million. Asset growth was primarily funded by a $265.3 million increase in deposits and a $17.9 million increase in shareholders’ equity.

Commercial Bank

Strong Portfolio Loan Growth – Portfolio loans, which exclude SBA-PPP loans, increased by $61.0 million, or 5.0 percent to $1.3 billion for the six months ended June 30, 2021 compared to $1.2 billion at December 31, 2020. The growth was primarily due to a 20.2 percent increase in commercial real estate loans.
Improved Deposit Franchise and Lower Cost of Funding – Noninterest bearing deposits increased by $219.7 million, or 36.1 percent, during the six months ended June 30, 2021 and represent 43.2% of total deposits at June 30, 2021. The cost of interest bearing liabilities declined to 0.73% from 1.55% in the prior year.
COVID-19 Related Deferrals – At June 30, 2021, outstanding loans deferred due to COVID-19 amounted to $11.9 million, a decrease of 91.7 percent from the high of $144.0 million at June 30, 2020 as shown in the table below.

Loan Modifications ⁽¹⁾
(dollars in millions)
	June 30, 2021					March 31, 2021			December 31, 2020			June 30, 2020
			Deferred Loans			Deferred Loans			Deferred Loans			Deferred Loans
Sector	Total Loans Outstanding		Balance		# of Loans Deferred	Balance		# of Loans Deferred	Balance		# of Loans Deferred	Balance		# of Loans Deferred
Accommodation & Food Services	$	114.2	$	5.0	7	$	16.1	15	$	14.7	16	$	42.6	36
Real Estate and Rental Leasing	463.1		0.8		1	3.2		4	5.5		10	45.6		67
Other Services Including Private Households	171.2		0.3		1	—		—	1.1		3	17.3		36
Educational Services	19.5		—		—	—		—	—		—	9.8		6
Construction	231.7		—		—	—		—	—		—	4.2		6
Professional, Scientific, and Technical Services	57.4		—		—	1.1		2	1.4		3	5.0		11
Arts, Entertainment & Recreation	37.2		2.0		3	1.3		1	0.7		2	5.0		9
Retail Trade	22.2		0.3		1	—		—	0.3		1	3.0		8
Healthcare & Social Assistance	94.3		—		—	—		—	0.9		1	4.7		11
Wholesale Trade	16.0		—		—	—		—	—		—	0.9		1
All other⁽¹⁾	368.4		3.5		3	3.7		3	5.9		7	5.9		13
Total	$	1,595.2	$	11.9	16	$	25.4	25	$	30.5	43	$	144.0	204

_______________

⁽¹⁾ Excludes modifications and deferrals made for OpenSky^® secured card customers.

Capital Bank Home Loans

Record Mortgage Originations and Revenues – Capital Bank Home Loans benefited from favorable industry trends, strategic hires and our ability to originate purchase volume (as distinct from refinance volume) equal to 35.7% of our $619.3 million of mortgage originations during the six months ended June 30, 2021, which compares to mortgage originations of $495.6 million for the same six month period last year. Mortgage revenues increased by $2.7 million or 26.4 percent to $13.0 million for the six months ended June 30, 2021 compared to $10.3 million for the six months ended June 30, 2020. Efforts to optimize product pricing and mix improved the average gain on sale to 2.91% compared to 2.82% in the prior year.

OpenSky

^®

Growth in OpenSky
^®
Credit Card Accounts – Improved marketing and favorable market conditions resulted in the origination of 223 thousand new OpenSky^®credit card accounts during the six months ended June 30, 2021 compared to 215 thousand for the same six month period in 2020. At June 30, 2021, total open accounts had increased by 76.7 percent, or 307 thousand to 708 thousand from 401 thousand at June 30, 2020.
Growth Contributing to Bank Performance – Account growth in the six months ended June 30, 2021 resulted in a $49.2 million increase in noninterest bearing secured credit card deposits that totaled $241.7 million at the end of the quarter. Corresponding credit card loans increased by $19.2 million, or 18.8 percent, for the six months ended June 30, 2021 and totaled $121.4 million. As a result, credit card fees increased by 177.5 percent, or $8.7 million, to $13.7 million compared to $4.9 million for the same six month period last year.

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited

	Quarter Ended								Six Months Ended
	June 30,								June 30,
(amounts in thousands except per share data)	2021			2020			% Change		2021			2020			% Change
Earnings Summary
Interest income	$	29,289		$	22,000		33.1	%	$	55,927		$	43,744		27.9	%
Interest expense	1,769			3,376			(47.6	)%	3,964			7,433			(46.7	)%
Net interest income	27,520			18,624			47.8	%	51,963			36,311			43.1	%
Provision for loan losses	781			3,300			(76.3	)%	1,284			5,709			(77.5	)%
Noninterest income	13,471			11,101			21.3	%	27,421			16,636			64.8	%
Noninterest expense	27,205			19,905			36.7	%	52,972			36,704			44.3	%
Income before income taxes	13,005			6,520			99.5	%	25,128			10,534			138.5	%
Income tax expense	3,357			1,759			90.8	%	6,499			2,839			128.9	%
Net income	$	9,648		$	4,761		102.6	%	$	18,629		$	7,695		142.1	%

Pre-tax pre-provision net revenue (“PPNR”) ⁽²⁾	$	13,786		$	9,820		40.4	%	$	26,412		$	16,243		62.6	%
Weighted average common shares – Basic	13,766			13,817			(0.4	)%	13,762			13,847			(0.6	)%
Weighted average common shares – Diluted	14,172			13,817			2.6	%	14,070			13,877			1.4	%
Earnings per share – Basic	$	0.70		$	0.34		103.4	%	$	1.35		$	0.56		141.1	%
Earnings per share – Diluted	$	0.68		$	0.34		97.6	%	$	1.32		$	0.55		140.0	%
Return on average assets ⁽¹⁾	1.90		%	1.19		%	59.7	%	1.88		%	1.03		%	82.5	%
Return on average assets, excluding impact of SBA-PPP loans^{(1) (2)}	1.65		%	1.04		%	58.7	%	1.60		%	0.95		%	68.4	%
Return on average equity	22.36		%	13.70		%	63.2	%	22.33		%	11.17		%	99.9	%

	Quarter Ended				2Q21 vs. 2Q20		Quarter Ended
	June 30,				2Q21 vs. 2Q20			March 31,	December 31,			September 30,
(in thousands except per share data)	2021		2020		% Change		2021			2020			2020
Balance Sheet Highlights
Assets	$	2,151,850	$	1,822,365	18.1	%	$	2,091,851		$	1,876,593		$	1,879,029
Investment securities available for sale	160,515		56,796		182.6	%	128,023			99,787			53,992
Mortgage loans held for sale	47,935		116,969		(59.0	)%	60,816			107,154			137,717
SBA-PPP loans, net of fees ⁽³⁾	202,763		229,646		(11.7	)%	265,712			201,018			233,349
Portfolio loans receivable ⁽³⁾	1,392,471		1,209,895		15.1	%	1,312,375			1,315,503			1,244,613
Allowance for loan losses	24,079		18,680		28.9	%	23,550			23,434			22,016
Deposits	1,917,419		1,608,726		19.2	%	1,863,069			1,652,128			1,662,211
FHLB borrowings	22,000		25,556		(13.9	)%	22,000			22,000			22,222
Other borrowed funds	12,062		17,392		(30.6	)%	12,062			14,016			17,516
Total stockholders’ equity	177,204		142,108		24.7	%	167,003			159,311			149,377
Tangible common equity⁽²⁾	177,204		142,108		24.7	%	167,003			159,311			149,377

Common shares outstanding	13,772		13,818		(0.3	)%	13,759			13,754			13,682
Tangible book value per share⁽²⁾	$	12.87	$	10.28	25.1	%	$	12.14		$	11.58		$	10.92

______________

⁽¹⁾Annualized.
⁽²⁾Refer to Appendix for reconciliation of non-GAAP measures.
⁽³⁾Loans are reflected net of deferred fees and costs.

Operating Results – Comparison of Three Months Ended June 30, 2021 and 2020

For the three months ended June 30, 2021, net interest income increased $8.9 million, or 47.8 percent, to $27.5 million from the same period in 2020, primarily due to an increase in interest earning assets and a decrease in rates on interest bearing liabilities. The net interest margin increased 75 basis point to 5.47% for the three months ended June 30, 2021 from the same period in 2020. Net interest margin, excluding credit card and SBA-PPP loans, was 3.55% for the second quarter of 2021 compared to 3.96% for the same period in 2020. For the three months ended June 30, 2021, average interest earning assets increased $428.4 million, or 27.0 percent, to $2.0 billion as compared to the same period in 2020, and the average yield on interest earning assets increased 25 basis points. Compared to the same period in the prior year, average interest-bearing liabilities increased $103.0 million, or 10.4 percent, while the average cost decreased 73 basis points to 0.65% from 1.38%.

The provision for loan losses of $781 thousand for the three months ended June 30, 2021 was due primarily to a small number of loan charge-offs, which was offset by improving overall credit metrics. On an annualized basis, net charge-offs for the second quarter of 2021 were $252 thousand, or 0.08% of average loans, compared to $134 thousand, or 0.05% of average loans on an annualized basis, for the second quarter of 2020. The $252 thousand in net charge-offs during the quarter was comprised of $90 thousand in commercial loans and $162 thousand in credit cards.

For the quarter ended June 30, 2021, noninterest income was $13.5 million, an increase of $2.4 million, or 21.34 percent, from $11.1 million in the prior year quarter. The increase was primarily driven by significant growth in credit card fees of $4.8 million resulting from the higher number of credit card accounts which was partially offset by a decrease of $2.1 million in mortgage banking revenue.

For the three months ended June 30, 2021, OpenSky’s^® net growth was 65 thousand secured credit card accounts, increasing the total number of open accounts to 708 thousand. This compares to 157 thousand net new accounts for the same period last year, which increased total open accounts to 401 thousand. Credit card loan balances increased by $37.7 million to $121.4 million as of June 30, 2021 from $53.1 million at June 30, 2020 and the related deposit account balances have increased 83 percent to $241.7 million. The growth in open accounts was primarily driven by enhanced marketing and economic conditions that led consumers to recognize the value and convenience of the Bank’s secured credit card product.

The efficiency ratio for the three months ended June 30, 2021 improved to 66.37% compared to 69.74% for the three months ended June 30, 2020 on higher levels of revenue and improved operating leverage.

Noninterest expense was $27.2 million for the three months ended June 30, 2021, as compared to $19.9 million for the three months ended June 30, 2020, an increase of $7.3 million, or 36.7 percent. The increase was primarily driven by a $4.5 million, or 79 percent, increase in data processing expenses, an increase in professional services of $0.5 million, an increase in marketing and advertising of $0.7 million, and an increase in operating expenses of $1.0 million, or 42.8 percent, quarter over quarter. The increase of $4.5 million in data processing expenses was mainly attributed to the higher volume of open credit cards during the second quarter of 2021. In addition, the $1.0 million increase in operating expenses is due to increases in credit expenses, outside service providers, and FDIC insurance.

Operating Results – Comparison of Six Months Ended June 30, 2021 and 2020

For the six months ended June 30, 2021, net interest income increased $15.7 million, or 43.1 percent, to $52.0 million from the same period in 2020, primarily due to an increase in interest earning assets and a decrease in rates on interest bearing liabilities. The net interest margin increased 40 basis points to 5.32% for the six months ended June 30, 2021 from the same period in 2020. Net interest margin, excluding credit card and SBA-PPP loans, was 3.59% six months ended June 30, 2020 compared to 3.96% for the same period in 2020. For the six months ended June 30, 2021, average interest earning assets increased $486.6 million, or 32.8 percent, to $2.0 billion as compared to the same period in 2020, and the average yield on interest earning assets decreased 20 basis points. Compared to the same period in the prior year, average interest-bearing liabilities increased $129.0 million, or 13.4 percent, while the average cost decreased 82 basis points to 0.73% from 1.55%.

For the six months ended June 30, 2021, the provision for loan losses was $1.3 million, a decrease of $4.4 million from the prior year to date period primarily due to the continued economic recovery from COVID-19. On an annualized basis, net charge-offs for the six months ended June 30, 2021 were $640 thousand, or 0.10% of average portfolio loans, compared to $330 thousand, or 0.05% of average portfolio loans on an annualized basis, for the same period in 2020. The $640 thousand in net charge-offs during the quarter was comprised of commercial loan charge-offs amounting to $195 thousand and $445 thousand in our credit card portfolio.

For the six months ended June 30, 2021, noninterest income was $27.4 million, an increase of $10.8 million, or 64.8 percent, from the same period in 2020. The increase was primarily driven by significant growth in credit card fees, which increased by $8.7 million, and mortgage banking revenues, which increased $2.7 million.

For the six months ended June 30, 2021, the Bank originated 223 thousand new OpenSky^® secured credit card accounts, increasing the total number of open accounts to 708 thousand. This compares to 215 thousand new originations for the same period last year, which increased total open accounts to 401 thousand.

The efficiency ratio for the six months ended June 30, 2021 decreased to 66.73% compared to 69.32% for the six months ended June 30, 2020, primarily resulting from increased revenue in addition to management’s efforts to control expenses.

Noninterest expense was $53.0 million for the six months ended June 30, 2021, as compared to $36.7 million for the six months ended June 30, 2020, an increase of $16.3 million, or 44.3%. The increase was primarily driven by an $1.4 million, or 8.8 percent, increase in salaries and benefits, an increase in professional fees of 79.5 percent, or $1.3 million, a $9.6 million, or 98.6 percent, increase in data processing, and a $2.0 million, or 45.4 percent, increase in other operating expenses period over the period. The increase of $6.4 million in data processing expenses was due to the higher volume of open credit cards and increased mortgage originations during the year. Additionally, operating expenses increased $2.0 million due to increases in credit expenses, outside service providers, and FDIC insurance.

During the six months ended June 30, 2021, results of operations were impacted by the COVID-19 pandemic and the resulting issuance of SBA-PPP loans. At June 30, 2021, SBA-PPP loans had remaining deferred origination fees of $6.5 million, and deferred costs of $1.2 million.

Financial Condition

Total assets at June 30, 2021 were $2.2 billion, an increase of 18.1 percent from June 30, 2020. Portfolio loans, which exclude mortgage loans held for sale and SBA-PPP loans, totaled $1.4 billion as of June 30, 2021, an increase of 15.1 percent as compared to $1.2 billion at June 30, 2020.

Total deposits at June 30, 2021 were $1.9 billion, an increase of 19.2 percent as compared to $1.6 billion at June 30, 2020. Noninterest bearing deposits increased by $264.3 million, or 46.9 percent, to $828.3 million at June 30, 2021 compared to the level at June 30, 2020. During the quarter, deposit balances grew in certain fiduciary accounts of title and property management companies, as well as noninterest bearing SBA-PPP loan customers and OpenSky^® deposits.

The Company recorded a provision for loan losses of $1.3 million during the six months ended June 30, 2021, which increased the allowance for loan losses to $24.1 million, or 1.51% of total loans (1.73%, excluding SBA-PPP loans, on a non-GAAP basis) at June 30, 2021. Nonperforming assets were $11.6 million, or 0.54% of total assets, as of June 30, 2021, up from $9.2 million, or 0.50% of total assets, at June 30, 2020. Of the $11.6 million in total nonperforming assets as of June 30, 2021, nonperforming loans represented $8.4 million and foreclosed real estate totaled $3.2 million. Included in nonperforming loans at June 30, 2021 were troubled debt restructurings of $558 thousand.

Stockholders’ equity increased to $177.2 million as of June 30, 2021, compared to $142.1 million at June 30, 2020. This increase was primarily attributable to earnings during the period. As of June 30, 2021, the Bank’s capital ratios continued to exceed the regulatory requirements for a “well-capitalized” institution.

Consolidated Statements of Income (Unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2021		2020		2021		2020
Interest income
Loans, including fees	$	28,641	$	21,609	$	54,709	$	42,683
Investment securities available for sale	544		316		1,021		656
Federal funds sold and other	104		75		197		405
Total interest income	29,289		22,000		55,927		43,744

Interest expense
Deposits	1,582		2,954		3,589		6,567
Borrowed funds	187		422		375		866
Total interest expense	1,769		3,376		3,964		7,433

Net interest income	27,520		18,624		51,963		36,311
Provision for loan losses	781		3,300		1,284		5,709
Net interest income after provision for loan losses	26,739		15,324		50,679		30,602

Noninterest income
Service charges on deposits	165		110		312		259
Credit card fees	7,715		2,912		13,655		4,921
Mortgage banking revenue	5,270		7,321		13,013		10,293
Gain on sale of investment securities available for sale, net	153		—		153		—
Other fees and charges	168		758		288		1,163
Total noninterest income	13,471		11,101		27,421		16,636

Noninterest expenses
Salaries and employee benefits	8,750		8,498		17,317		15,910
Occupancy and equipment	1,195		1,152		2,324		2,330
Professional fees	1,362		894		2,987		1,664
Data processing	10,122		5,667		19,433		9,784
Advertising	1,293		606		2,126		1,242
Loan processing	975		740		2,026		1,187
Other real estate expenses, net	273		82		277		128
Other operating	3,235		2,266		6,482		4,459
Total noninterest expenses	27,205		19,905		52,972		36,704
Income before income taxes	13,005		6,520		25,128		10,534
Income tax expense	3,357		1,759		6,499		2,839
Net income	$	9,648	$	4,761	$	18,629	$	7,695

Consolidated Balance Sheets
(in thousands except share data)	(unaudited) June 30, 2021		December 31, 2020
Assets
Cash and due from banks	$	19,691	$	18,456
Interest bearing deposits at other financial institutions	286,738		126,081
Federal funds sold	2,237		2,373
Total cash and cash equivalents	308,666		146,910
Investment securities available for sale	160,515		99,787
Marketable equity securities	245		245
Restricted investments	3,478		3,713
Loans held for sale	47,935		107,154
U.S. Small Business Administration Payroll Protection Program (“SBA-PPP”) loans receivable, net of fees	202,763		201,018
Portfolio loans receivable, net of deferred fees and costs and net of allowance for loan losses of $24,079 and $23,434	1,368,392		1,292,068
Premises and equipment, net	4,134		4,464
Accrued interest receivable	7,786		8,134
Deferred income taxes, net	7,381		6,818
Other real estate owned	3,236		3,326
Bank owned life insurance	35,004		—
Other assets	2,315		2,956
Total assets	$	2,151,850	$	1,876,593

Liabilities
Deposits
Noninterest bearing	$	828,308	$	608,559
Interest bearing	1,089,111		1,043,569
Total deposits	1,917,419		1,652,128
Federal Home Loan Bank advances	22,000		22,000
Other borrowed funds	12,062		14,016
Accrued interest payable	959		1,134
Other liabilities	22,206		28,004
Total liabilities	1,974,646		1,717,282

Stockholders’ equity
Common stock, $.01 par value; 49,000,000 shares authorized; 13,771,615 and 13,753,529 issued and outstanding	138		138
Additional paid-in capital	51,487		50,602
Retained earnings	125,431		106,854
Accumulated other comprehensive income	148		1,717
Total stockholders’ equity	177,204		159,311
Total liabilities and stockholders’ equity	$	2,151,850	$	1,876,593

The following table shows the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.

	Three Months Ended June 30,
	2021						2020
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate ⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate ⁽¹⁾
	(Dollars in thousands)
Assets
Interest earning assets:
Interest bearing deposits	$	259,330	$	63	0.10	%	$	79,854	$	19	0.09	%
Federal funds sold	3,087		—		0.00		1,889		—		0.05
Investment securities available for sale	139,997		544		1.56		58,860		316		2.16
Restricted stock	3,478		41		4.70		4,152		56		5.46
Loans held for sale	44,644		314		2.82		78,254		687		3.53
SBA-PPP loans receivable	250,040		2,272		3.64		166,033		1,011		2.45
Portfolio loans receivable⁽²⁾	1,316,224		26,055		7.94		1,199,338		19,911		6.68
Total interest earning assets	2,016,800		29,289		5.82		1,588,380		22,000		5.57
Noninterest earning assets	24,432						24,459
Total assets	$	2,041,232					$	1,612,839

Liabilities and Stockholders’ Equity
Interest bearing liabilities:
Interest bearing demand accounts	$	282,197	50		0.07		$	182,095	171		0.38
Savings	6,634		1		0.05		4,522		1		0.05
Money market accounts	460,669		352		0.31		472,802		1,279		1.09
Time deposits	304,519		1,179		1.55		282,695		1,503		2.14
Borrowed funds	35,770		187		2.10		44,672		422		3.79
Total interest bearing liabilities	1,089,789		1,769		0.65		986,786		3,376		1.38
Noninterest bearing liabilities:
Noninterest bearing liabilities	20,111						21,647
Noninterest bearing deposits	758,255						464,702
Stockholders’ equity	173,077						139,704
Total liabilities and stockholders’ equity	$	2,041,232					$	1,612,839

Net interest spread					5.17	%					4.19	%
Net interest income			$	27,520					$	18,624
Net interest margin⁽³⁾					5.47	%					4.72	%

_______________

⁽¹⁾ Annualized.
⁽²⁾ Includes nonaccrual loans.
⁽³⁾ For the three months ended June 30, 2021 and June 30, 2020, collectively, SBA-PPP loans and credit card loans accounted for 192 and 76 basis points of the reported net interest margin, respectively.

	Six Months Ended June 30,
	2021						2020
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate ⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate ⁽¹⁾
	(Dollars in thousands)
Assets
Interest earning assets:
Interest bearing deposits	$	232,712	$	113	0.10	%	$	88,238	$	278	0.63	%
Federal funds sold	3,477		—		0.00		1,479		4		0.51
Investment securities available for sale	123,443		1,022		1.67		59,628		656		2.21
Restricted stock	3,691		83		4.56		4,035		123		6.15
Loans held for sale	58,475		794		2.74		60,180		1,053		3.52
SBA-PPP loans receivable	242,619		4,741		3.94		83,060		1,011		2.45
Portfolio loans receivable⁽²⁾	1,305,973		49,174		7.59		1,187,170		40,619		6.88
Total interest earning assets	1,970,390		55,927		5.72		1,483,790		43,744		5.93
Noninterest earning assets	25,113						21,279
Total assets	$	1,995,503					$	1,505,069

Liabilities and Stockholders’ Equity
Interest bearing liabilities:
Interest bearing demand accounts	$	269,647	118		0.09		$	162,985	398		0.49
Savings	6,127		2		0.05		4,463		4		0.17
Money market accounts	465,882		881		0.38		459,865		2,967		1.30
Time deposits	318,512		2,588		1.64		293,374		3,198		2.19
Borrowed funds	34,699		375		2.18		45,214		866		3.85
Total interest bearing liabilities	1,094,867		3,964		0.73		965,901		7,433		1.55
Noninterest bearing liabilities:
Noninterest bearing liabilities	22,940						20,744
Noninterest bearing deposits	709,443						379,881
Stockholders’ equity	168,253						138,543
Total liabilities and stockholders’ equity	$	1,995,503					$	1,505,069

Net interest spread					4.99	%					4.38	%
Net interest income			$	51,963					$	36,311
Net interest margin⁽³⁾					5.32	%					4.92	%

_______________

⁽¹⁾ Annualized.
⁽²⁾ Includes nonaccrual loans.
⁽³⁾ For the six months ended June 30, 2021 and June 30, 2020, collectively, SBA-PPP loans and credit card loans accounted for 173 and 96 basis points of the reported net interest margin, respectively.

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited
	Quarter Ended
(Dollars in thousands except per share data)	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Earnings:
Net income	$	9,648		$	8,982		$	9,689		$	8,438		$	4,761
Earnings per common share, diluted	0.68			0.65			0.71			0.61			0.34
Net interest margin	5.47		%	5.15		%	5.57		%	5.01		%	4.72		%
Net interest margin, excluding credit cards & SBA-PPP loans ⁽¹⁾	3.55		%	3.70		%	3.80		%	3.84		%	3.96		%
Return on average assets⁽²⁾	1.90		%	1.87		%	2.08		%	1.89		%	1.19		%
Return on average assets, excluding impact of SBA-PPP loans⁽¹⁾⁽²⁾	1.65		%	1.60		%	1.88		%	1.80		%	1.04		%
Return on average equity⁽²⁾	22.36		%	22.30		%	25.26		%	23.28		%	13.70		%
Efficiency ratio	66.37		%	67.11		%	66.63		%	65.17		%	69.74		%
Balance Sheet:
Portfolio loans receivable ⁽³⁾	$	1,392,471		$	1,312,375		$	1,315,503		$	1,244,613		$	1,209,895
Deposits	1,917,419			1,863,069			1,652,128			1,662,211			1,608,726
Total assets	2,151,850			2,091,851			1,876,593			1,879,029			1,822,365
Asset Quality Ratios:
Nonperforming assets to total assets	0.54		%	0.58		%	0.67		%	0.79		%	0.50		%
Nonperforming assets to total assets, excluding the SBA-PPP loans ⁽¹⁾	0.60		%	0.66		%	0.75		%	0.90		%	0.58		%
Nonperforming loans to total loans	0.52		%	0.56		%	0.61		%	0.78		%	0.41		%
Nonperforming loans to portfolio loans ⁽¹⁾	0.60		%	0.67		%	0.70		%	0.92		%	0.48		%
Net charge-offs to average portfolio loans ⁽¹⁾⁽²⁾	0.10		%	0.12		%	0.19		%	0.06		%	0.05		%
Allowance for loan losses to total loans	1.51		%	1.49		%	1.54		%	1.49		%	1.30		%
Allowance for loan losses to portfolio loans ⁽¹⁾	1.73		%	1.79		%	1.78		%	1.77		%	1.54		%
Allowance for loan losses to non-performing loans	287.40		%	267.07		%	253.71		%	191.78		%	318.25		%
Bank Capital Ratios:
Total risk based capital ratio	13.51		%	13.55		%	12.60		%	12.74		%	12.35		%
Tier 1 risk based capital ratio	12.25		%	12.29		%	11.34		%	11.48		%	11.10		%
Leverage ratio	7.58		%	7.54		%	7.45		%	7.44		%	7.73		%
Common equity Tier 1 capital ratio	12.25		%	12.29		%	11.34		%	11.48		%	11.10		%
Tangible common equity	7.17		%	7.01		%	7.43		%	7.09		%	6.91		%
Holding Company Capital Ratios:
Total risk based capital ratio	16.14		%	16.07		%	15.19		%	15.35		%	15.02		%
Tier 1 risk based capital ratio	14.10		%	13.98		%	13.10		%	12.93		%	12.58		%
Leverage ratio	8.78		%	8.84		%	8.78		%	8.63		%	8.85		%
Common equity Tier 1 capital ratio	13.94		%	13.81		%	12.94		%	12.75		%	12.39		%
Tangible common equity	8.23		%	7.98		%	8.48		%	7.95		%	7.80		%
Composition of Loans:
Residential real estate	$	420,015		$	420,460		$	437,860		$	422,698		$	437,429
Commercial real estate	471,807			433,336			392,550			372,972			364,071
Construction real estate	223,832			221,277			224,904			227,661			212,957
Commercial and industrial – Other	158,392			149,914			157,127			134,889			142,673
SBA-PPP loans	208,094			272,090			204,920			238,735			236,325
Credit card	121,410			83,740			102,186			84,964			53,150
Other consumer loans	1,034			4,487			1,649			2,268			947
Composition of Deposits:
Noninterest bearing	$	828,308		$	771,924		$	608,559		$	596,239		$	563,995
Interest bearing demand	314,883			300,992			257,126			247,150			268,150
Savings	6,965			6,012			4,800			4,941			5,087
Money Markets	484,567			471,303			447,077			472,447			507,432
Time Deposits	282,696			312,839			334,566			341,435			264,062
Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	265,517		$	353,774		$	382,267		$	431,060		$	315,165
Mortgage loans sold	278,284			400,112			412,830			410,312			272,151
Gain on sale of loans	7,763			12,008			12,950			12,837			8,088
Purchase volume as a % of originations	50.64		%	24.59		%	30.03		%	33.76		%	31.16		%
Gain on sale as a % of loans sold⁽⁴⁾	2.79		%	3.00		%	3.14		%	3.13		%	2.97		%
Mortgage commissions	$	2,364		$	3,320		3,405			$	3,669		$	2,798
OpenSky ^® Portfolio Metrics:
Active customer accounts	707,600			642,272			568,373			529,114			400,530
Credit card loans, net	$	121,410		$	83,740		$	102,186		$	83,101		$	53,150
Noninterest secured credit card deposits	241,724			215,883			192,520			176,708			131,854

_______________

(1) Refer to Appendix for reconciliation of non-GAAP measures.
(2) Annualized.
(3) Loans are reflected net of deferred fees and costs.
(4) Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.

Appendix

Reconciliation of Non-GAAP Measures

Return on Average Assets, as Adjusted	Quarters Ended
Dollars in Thousands	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020

Net Income	$	9,648		$	8,982		$	9,689		$	8,438		$	4,761
Less: SBA-PPP loan income	2,272			2,205			1,998			1,470			1,011
Net Income, as Adjusted	$	7,376		$	6,777		$	7,691		$	6,968		$	3,750
Average Total Assets	2,041,232			1,949,265			1,854,846			1,781,295			1,612,839
Less: Average SBA-PPP Loans	250,040			232,371			227,617			238,071			168,490
Average Total Assets, as Adjusted	$	1,791,192		$	1,716,894		$	1,627,229		$	1,543,224		$	1,444,349
Return on Average Assets, as Adjusted	1.65		%	1.60		%	1.88		%	1.80		%	1.04		%

Net Interest Margin, as Adjusted	Quarters Ended
Dollars in Thousands	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020

Net Interest Income	$	27,520		$	24,444		$	25,719		$	22,039		$	18,624
Less Secured credit card loan income	10,497			7,660			9,306			6,632			4,066
Less SBA-PPP loan income	2,272			2,205			1,998			1,470			1,011
Net Interest Income, as Adjusted	$	14,750		$	14,580		$	14,415		$	13,937		$	13,547
Average Interest Earning Assets	2,016,801			1,923,463			1,836,337			1,748,894			1,588,380
Less Average secured credit card loans	100,456			93,520			95,739			68,585			42,538
Less Average SBA-PPP loans	250,040			232,371			227,617			235,160			168,490
Total Average Interest Earning Assets, as Adjusted	$	1,666,304		$	1,597,573		$	1,512,981		$	1,445,149		$	1,377,352
Net Interest Margin, as Adjusted	3.55		%	3.70		%	3.80		%	3.84		%	3.96		%

Tangible Book Value per Share	Quarters Ended
Dollars in Thousands, Except Per Share Amount	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020

Total Stockholders’ Equity	$	177,204	$	167,003	$	159,311	$	149,377	$	142,108
Less: Preferred equity	—		—		—		—		—
Less: Intangible assets	—		—		—		—		—
Tangible Common Equity	$	177,204	$	167,003	$	159,311	$	149,377	$	142,108
Period End Shares Outstanding	13,771,615		13,759,218		13,753,529		13,682,198		13,818,223
Tangible Book Value per Share	$	12.87	$	12.14	$	11.58	$	10.92	$	10.28

Allowance for Loan Losses to Total Portfolio Loans	Quarters Ended
Dollars in Thousands	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020

Allowance for Loan Losses	$	24,079		$	23,550		$	23,434		$	22,016		$	18,680
Total Loans	1,595,234			1,578,087			1,516,520			1,477,962			1,441,123
Less: SBA-PPP loans	202,763			265,712			201,018			233,349			229,646
Total Portfolio Loans	$	1,392,471		$	1,312,375		$	1,315,503		$	1,244,613		$	1,211,477
Allowance for Loan Losses to Total Portfolio Loans	1.73		%	1.79		%	1.78		%	1.77		%	1.54		%


Nonperforming Assets to Total Assets, net SBA-PPP Loans	Quarters Ended
Dollars in Thousands	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020

Total Nonperforming Assets	$	11,615		$	12,112		$	12,563		$	14,806		$	9,195
Total Assets	2,151,850			2,091,851			1,876,593			1,879,029			1,822,365
Less: SBA-PPP loans	202,763			265,712			201,018			233,349			229,646
Total Assets, net SBA-PPP Loans	$	1,949,087		$	1,826,139		$	1,675,575		$	1,645,680		$	1,592,719
Nonperforming Assets to Total Assets, net SBA-PPP Loans	0.60		%	0.66		%	0.75		%	0.90		%	0.58		%


Nonperforming Loans to Portfolio Loans	Quarters Ended
Dollars in Thousands	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020

Total Nonperforming Loans	$	8,378		$	8,818		$	9,237		$	11,480		$	5,869
Total Loans	1,595,234			1,578,087			1,516,520			1,477,962			1,441,123
Less: SBA-PPP loans	202,763			265,712			201,018			233,349			229,646
Total Portfolio Loans	$	1,392,471		$	1,312,375		$	1,315,503		$	1,244,613		$	1,211,477
Nonperforming Loans to Total Portfolio Loans	0.60		%	0.67		%	0.70		%	0.92		%	0.48		%


Net Charge-offs to Average Portfolio Loans	Quarters Ended
Dollars in Thousands	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020

Total Net Charge-offs	$	640		$	388		$	615		$	163		$	134
Total Average Loans	1,567,973			1,532,093			1,494,278			1,477,962			1,365,371
Less: Average SBA-PPP loans	250,040			232,371			227,617			233,349			84,245
Total Average Portfolio Loans	$	1,317,932		$	1,299,722		$	1,266,661		$	1,244,613		$	1,281,126
Net Charge-offs to Average Portfolio Loans	0.19		%	0.12		%	0.19		%	0.05		%	0.05		%


Pre-tax, Pre-provision Net Revenue (“PPNR”)	Quarters Ended
Dollars in Thousands	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020

Net income	$	9,648		$	8,982		$	9,689		$	8,438		$	4,761
Add: Income Tax Expense	3,357			3,143			3,347			3,128			1,759
Add: Provision for Loan Losses	781			503			2,033			3,500			3,300
Pre-tax, Pre-provision Net Revenue (“PPNR”)	$	13,786		$	12,628		$	15,069		$	15,066		$	9,820

ABOUT CAPITAL BANCORP, INC.

Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. The Company’s wholly-owned subsidiary, Capital Bank, N.A., is the fifth largest bank headquartered in Maryland at June 30, 2021. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in five locations in the greater Washington, D.C. and Baltimore, Maryland markets. Capital Bancorp had assets of approximately $2.2 billion at June 30, 2021 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company’s website www.CapitalBankMD.com under its investor relations page.

FORWARD-LOOKING STATEMENTS

This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “optimistic,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.

Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be fully reopened. As a result of the COVID-19 pandemic and the related adverse local and national economic consequences, we are exposed to all of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: the demand for our products and services may decline, making it difficult to grow assets and income; if the economy is unable to substantially reopen as planned, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income; our cyber security risks are increased as the result of an increase in the number of employees working remotely; and Federal Deposit Insurance Corporation premiums may increase if the agency experiences additional resolution costs.

These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.

FINANCIAL CONTACT: Alan Jackson (240) 283-0402

MEDIA CONTACT: Ed Barry (240) 283-1912

WEB SITE: www.CapitalBankMD.com

July 22, 2021 7:36 am

Zevia Announces Pricing of Initial Public Offering

Zevia Announces Pricing of Initial Public Offering

LOS ANGELES–(BUSINESS WIRE)–
Zevia PBC (NYSE:ZVIA) today announced the pricing of its initial public offering of 10,700,000 shares of its Class A common stock at a public offering price of $14.00 per share. The shares are expected to begin trading on the New York Stock Exchange on July 22, 2021 under the ticker symbol “ZVIA.”

In addition, Zevia has granted the underwriters a 30-day option to purchase up to an additional 1,605,000 shares of its Class A common stock at the initial public offering price, less underwriting discounts and commissions. The offering is expected to close on or about July 26, 2021 subject to satisfaction of customary closing conditions.

Goldman Sachs & Co. LLC, BofA Securities and Morgan Stanley are acting as lead book-running managers for the proposed offering. Stephens Inc., BMO Capital Markets and Wells Fargo Securities are acting as joint book-running managers. Telsey Advisory Group, Loop Capital Markets, Academy Securities, AmeriVet Securities and Ramirez & Co., Inc. are acting as co-managers.

A registration statement relating to the shares being sold was filed with the U.S. Securities and Exchange Commission and became effective on July 21, 2021. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of any of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering may be made only by means of a prospectus. Copies of the final prospectus related to the offering may be obtained, when available, from:

Goldman Sachs & Co. LLC

Prospectus Department

200 West Street

New York, NY 10282

telephone: 1-866-471-2526

facsimile: 212-902-9316

or by emailing [email protected]

BofA Securities

NC1-004-03-43

200 North College Street, 3rd Floor

Charlotte, NC 28255-0001

Attn: Prospectus Department

or via email: [email protected]

Morgan Stanley & Co. LLC

Attn: Prospectus Department

180 Varick Street, 2nd Floor

New York, NY 10014

About Zevia

Zevia PBC, a Public Benefit Corporation, is a certified B Corp focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero sugar, zero calorie, naturally sweetened beverages. All Zevia beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, vegan, zero sodium and free of added color. As of 2020, Zevia is distributed in more than 25,000 retail locations in the U.S. and Canada through a diverse network of major retailers in the food, drug, mass, natural and ecommerce channels.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005540/en/

Stephanie Schonauer

Investors

714-313-7827

[email protected]

Sarah Kissko Hersh

Media

646-283-8508

[email protected]

Reed Anderson

ICR

646-277-1260

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Finance Banking Supermarket Specialty Professional Services Food/Beverage Retail Supply Chain Management Online Retail

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July 22, 2021 7:36 am

Seres Therapeutics to Host Conference Call and Webcast to Discuss Topline Results from Phase 2b Study of SER-287 to Treat Mild-to-Moderate Ulcerative Colitis

Seres Therapeutics to Host Conference Call and Webcast to Discuss Topline Results from Phase 2b Study of SER-287 to Treat Mild-to-Moderate Ulcerative Colitis

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Seres Therapeutics, Inc. (Nasdaq: MCRB), a leading microbiome therapeutics company, today announced that management will host a conference call and live audio webcast today at 8:30 a.m. ET to discuss topline results from the Phase 2b ECO-RESET study evaluating SER-287 in patients with mild-to-moderate ulcerative colitis (UC).

To access the conference call, please dial 844-277-9450 (domestic) or 336-525-7139 (international) and reference the conference ID number 5155278. To join the live webcast, please visit the “Investors and Media” section of the Seres website at www.serestherapeutics.com.

A webcast replay will be available on the Seres website beginning approximately two hours after the event and will be archived for approximately 21 days.

About Seres Therapeutics

Seres Therapeutics, Inc., (Nasdaq: MCRB) is a leading microbiome therapeutics company developing a novel class of multifunctional bacterial consortia that are designed to functionally interact with host cells and tissues to treat disease. Seres’ SER-109 program achieved the first-ever positive pivotal clinical results for a targeted microbiome drug candidate and has obtained Breakthrough Therapy and Orphan Drug designations from the FDA. The SER-109 program is being advanced for the treatment of recurrent C. difficile infection and has potential to become a first-in-class FDA-approved microbiome therapeutic. Seres is evaluating SER-301 in a Phase 1b study in patients with ulcerative colitis and SER-155 in a Phase 1b study to address gastrointestinal infections, bacteremia and graft-versus-host disease. For more information, please visit www.serestherapeutics.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation: the potential impact of microbiome therapeutics; the safety, efficacy and regulatory and clinical progress of our product candidates; plans, timing and potential impact of the release of additional preclinical and clinical data, including with respect to the SER-287 microbiome analyses; our development opportunities, including the future of development in UC; and other statements which are not historical fact.

These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: we have incurred significant losses, are not currently profitable and may never become profitable; our need for additional funding; our limited operating history; the impact of the COVID-19 pandemic; our unproven approach to therapeutic intervention; the lengthy, expensive and uncertain process of clinical drug development; our reliance on third parties and collaborators to conduct our clinical trials, manufacture our product candidates and develop and commercialize our product candidates, if approved; and our ability to retain key personnel and to manage our growth. These and other important factors discussed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, or SEC, on May 4, 2021, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005539/en/

PR Contact

Kristin Ainsworth

[email protected]

IR Contact

Carlo Tanzi, Ph.D.

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Biotechnology FDA Health Pharmaceutical Clinical Trials

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July 22, 2021 7:34 am

Hyzon Motors unveils new hydrogen storage system expected to cut development costs in half

– Innovative design for onboard hydrogen storage systems reduces weight, manufacturing cost, component requirements

– Hyzon independently developed system to increase efficiency, accelerate hydrogen mobility for commercial vehicles

– Proprietary technology already installed in pilot trucks in Europe, with production also planned in company’s U.S. facility

PR Newswire

ROCHESTER, N.Y., July 22, 2021 /PRNewswire/ — Hyzon Motors Inc. (NASDAQ:HYZN), a leading global supplier of zero-emission hydrogen fuel cell-powered commercial vehicles, announced today it has developed new onboard hydrogen storage system technology capable of reducing the weight and manufacturing cost of commercial vehicles powered by Hyzon’s hydrogen fuel cells.

The patent-pending onboard hydrogen storage system technology integrates lightweight composite materials with the system’s metal frame. It has the potential to reduce the overall weight of the system by 43%, storage system costs by 52% and the required manufacturing component count by 75%, based on a single-rack system with capacity to store five hydrogen cylinders.

In addition to reducing the weight and costs, the new storage system can be configured to hold varying numbers of hydrogen tanks. The smallest version can hold five tanks and can be extended to seven tanks because of its modular design. A separate version can hold 10 tanks, appropriate for trucks driving longer distances.

While these configurations are mounted completely behind the cab, another configuration allows for an additional two tanks to be mounted to each side of the truck, extending the vehicle’s range without diminishing the size of the trailer.

The development of this technology was a cross-Atlantic collaboration between Hyzon’s European and U.S. teams, with the company planning to produce this new system in both its Rochester, N.Y., and Groningen, the Netherlands, facilities. The technology will be implemented in Hyzon’s vehicles world-wide.

Hyzon also expects to license this new system to other commercial vehicle companies. As part of the Hyzon Zero Carbon Alliance, a global consortium of companies active along the hydrogen value chain, original equipment manufacturers (OEMs) are expected to have access to the technology.

“Hyzon is committed to continuous innovation in our zero-emission commercial vehicles, down to every detail, enabling our customers to make the switch to hydrogen from diesel without compromise,” said CEO Craig Knight. “After years of research and development alongside our partners, this new storage technology further optimizes the building cost of our hydrogen fuel cell-powered commercial vehicles, while reducing overall weight and increasing mileage capabilities. This makes Hyzon vehicles an even more attractive alternative to heavy vehicles powered by combustion engines.”

The technology already has been installed in pilot trucks in Europe and is expected to be deployed across all vehicles beginning in Q4 2021.

About Hyzon Motors Inc.
Headquartered in Rochester, N.Y., with U.S. operations also in Chicago and Detroit, and international operations in the Netherlands, Singapore, Australia and China, Hyzon is a leader in hydrogen mobility. Hyzon is a pure-play hydrogen mobility company with an exclusive focus on hydrogen in the commercial vehicle market. Utilizing its proven and proprietary hydrogen fuel cell technology, Hyzon aims to supply zero-emission heavy duty trucks and buses to customers in North America, Europe and around the world. The company is contributing to the escalating adoption of hydrogen vehicles through its demonstrated technology advantage, leading fuel cell performance and history of rapid innovation. Visit www.hyzonmotors.com.

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity and market share, market acceptance of our new hydrogen storage technology and our ability to successfully commercialize it, and our success in obtaining patent protection. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management of Hyzon Motors Inc. (formerly known as Decarbonization Plus Acquisition Corporation) (“Hyzon” or the “Company”) and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Hyzon. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; failure to realize the anticipated benefits of the business combination between Hyzon and Hyzon Motors USA Inc. (formerly known as Hyzon Motors Inc.) and related transactions (the “Business Combination”); risks relating to the uncertainty of the projected financial information with respect to Hyzon; risks related to the rollout of Hyzon’s business and the timing of expected business milestones; the effects of competition on Hyzon’s business; the ability of Hyzon to issue equity or equity-linked securities in the future; and those factors discussed in Hyzon’s definitive proxy statement filed with the Securities and Exchange Commission (the “SEC”) on June 21, 2021 under the heading “Risk Factors” and other documents of Hyzon filed, or to be filed, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Hyzon presently does not know or that Hyzon currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Hyzon’s expectations, plans or forecasts of future events and views as of the date of this press release. Hyzon anticipates that subsequent events and developments will cause Hyzon’s assessments to change. However, while Hyzon may elect to update these forward-looking statements at some point in the future, Hyzon specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Hyzon’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Neither Hyzon nor any of its affiliates have any obligation to update this press release.

Media contacts

Hyzon Motors
For U.S., Europe and Asia media:
Caroline Curran
Hill+Knowlton Strategies
+1 256-653-5811
[email protected]

For Australasian media:
Fraser Beattie
Cannings Purple
+61 421 505 557
[email protected]

For investors:
Caldwell Bailey
ICR, Inc.
[email protected]

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SOURCE HYZON Motors

July 22, 2021 7:34 am

Largo Resources Appoints Ian Robertson to Co-Chair of its Board of Directors and as Interim President of Largo Clean Energy

Largo Resources Appoints Ian Robertson to Co-Chair of its Board of Directors and as Interim President of Largo Clean Energy

TORONTO–(BUSINESS WIRE)–
Largo Resources Ltd. (“Largo” or the “Company“) (TSX: LGO) (NASDAQ: LGO) today announces the appointment of Ian Robertson as Co-Chair of its Board of Directors (the “Board”). Mr. Robertson will also assume an active role in helping direct Largo Clean Energy Corp. (“LCE”) as it commences the formal search for a permanent leader.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210722005538/en/

Largo Resources Appoints Ian Robertson to Co-Chair of its Board of Directors and as Interim President of Largo Clean Energy (Photo: Business Wire)

J. Alberto Arias, Co-Chair of the Board of Largo, commented: “With decades of exceptional leadership experience as a chief executive and board member, alongside deep institutional knowledge across the renewable energy sector, I am delighted that Ian has agreed to co-chair the Board of Largo Resources as we lead the Company through the transformational opportunity in the energy storage industry which we expect to be one of the key drivers of future growth and value creation for the Company.” He continued: “We are also extremely grateful to have Ian assume the position of President of our clean energy division as we commence the search for a permanent replacement. Ian’s strong business experience, including strategic contacts in the energy and utility industries, combined with his commitment to sustainable development are invaluable as we continue to strategically develop Largo Clean Energy. I am confident that in working together, Largo will be successful in executing its growth strategy going forward.”

Ian Robertson, Co-Chair of the Board and President of LCE, commented: “I am honored to have the opportunity to co-chair Largo’s Board with Alberto, whose leadership and vision have positioned the Company to achieve extraordinary success over the last 10 years, and to continue to work more closely with Paulo Misk and the rest of the executive team in continuing to evolve Largo Clean Energy for its new stage of growth.” He continued: “Largo brings a compelling combination to the market and I am excited to work with the Board and executive management as we continue to offer innovative solutions to support a low-carbon future.”

About Largo Resources

Largo Resources is an industry preferred, vertically integrated vanadium company. It services multiple vanadium market applications through the supply of its unrivaled VPURE™ and VPURE+™ products, from one of the world’s highest-grade vanadium deposits at the Company’s Maracás Menchen Mine located in Brazil. Largo is also focused on the advancement of renewable energy storage solutions through its world-class VCHARGE± vanadium redox flow battery technology. The Company’s common shares are listed on the Toronto Stock Exchange and on the Nasdaq Stock Market under the symbol “LGO”.

For more information on Largo and VPURE™, please visit www.largoresources.com and www.largoVPURE.com.

For additional information on Largo Clean Energy, please visit www.largocleanenergy.com.

Trademarks are owned by Largo Resources Ltd.

Forward-looking Information:

This press release contains forward-looking information under Canadian securities legislation, (“forward-looking statements”). Forward‐looking information in this press release includes, but is not limited to, statements with respect to our ability to market and sell our VCHARGE± battery system on specification and at a competitive price, the production, delivery and sale to Enel Green Power of a VCHARGE+ battery system, the design of that system, expected transaction value, future VCHARGE+ battery system sales, and the growth of the long-duration energy storage market. Forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo or Largo Clean Energy to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the failure to satisfy conditions in the agreement with Enel, termination of the agreement, and those risks described in the annual information form of Largo and in its public documents filed on www.sedar.com and www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo’s annual and interim MD&As which also apply.

Trademarks are owned by Largo Resources Ltd.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210722005538/en/

Investor Relations:

Alex Guthrie

Senior Manager, External Relations

[email protected]

Tel: +1 416‐861‐9797

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Alternative Energy Energy Other Energy

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Largo Resources Appoints Ian Robertson to Co-Chair of its Board of Directors and as Interim President of Largo Clean Energy (Photo: Business Wire)

July 22, 2021 7:34 am

S&T Bancorp, Inc. Announces Second Quarter 2021 Net Income

PR Newswire

INDIANA, Pa., July 22, 2021 /PRNewswire/ — S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio and Upstate New York, announced net income of $28.4 million, or $0.72 per diluted share, for the second quarter of 2021 compared to net income of $31.9 million, or $0.81 per diluted share, for the first quarter of 2021, and a net loss of ($33.1) million, or ($0.85) per diluted share, for the second quarter of 2020. A loss of $58.7 million was recognized during the second quarter of 2020 related to a customer fraud resulting from a check kiting scheme. This fraud loss reduced net income by $46.3 million, or $1.19 per diluted share, resulting in a net loss for the second quarter of 2020.

New Chief Executive Officer

Christopher J. McComish has been appointed as the company’s chief executive officer, effective August 23, 2021. Chris McComish has over 30 years of financial service experience, providing executive leadership to consumer banking, commercial banking, and wealth management businesses. He has a strong track record of driving growth and transformation while enhancing both digital and human customer engagement. Most recently, Chris served as senior executive vice president of TCF Bank, leading all consumer banking lines of business as well as business banking and wealth management. Prior to TCF, he served as president and CEO of Scottrade Bank, the banking subsidiary of Scottrade Financial Services, Inc. In addition, he served as the head of personal banking and then as chief operating officer for personal and commercial banking at BMO Harris Bank. He began his career at Wachovia Bank, where he spent over 20 years in various regional and line of business leadership roles.

“I am honored to have the opportunity to partner with Chris to lead this great organization,” said David Antolik, president and interim chief executive officer. “Chris’s experience in executive leadership roles in banking combined with my 30 plus years of experience at S&T puts us in a position of strength to move our company forward.”

Second Quarter of 2021 Highlights:

Christopher McComish has been appointed as the chief executive officer, effective August 23, 2021.
Return on average assets (ROA) of 1.21%, return on average equity (ROE) of 9.65%, return on average tangible equity (ROTE) (non-GAAP) of 14.41% and pre-tax pre-provision income to average assets (PTPP) (non-GAAP) of 1.61%.
Net interest margin (FTE) (non-GAAP) decreased 31 basis points to 3.16% compared to 3.47% for the first quarter of 2021 primarily due to higher cash balances and a lower Paycheck Protection Program (PPP) contribution.
Ex-PPP portfolio loans decreased $12.7 million and total portfolio loans decreased $175.8 million compared to March 31, 2021.
Deposits increased $139.2 million to $8.0 billion at June 30, 2021 compared to March 31, 2021.
The allowance for credit losses to total portfolio loans was 1.56% at June 30, 2021 compared to 1.60% at March 31, 2021.
S&T’s Board of Directors declared a $0.28 per share dividend which was consistent with the $0.28 per share dividend declared in the same period in the prior year.

“We continue to see positive signs of a recovery across all of our markets,” said David Antolik. “Customer activity has increased substantially and our loan pipeline exceeds pre-pandemic levels making us optimistic about our growth prospects for the second half of 2021.”

Net Interest Income

Net interest income decreased $2.4 million to $68.3 million for the second quarter of 2021 compared to $70.7 million for the first quarter of 2021. The decrease in net interest income was primarily due to a lower contribution from PPP and lower average loan balances ex-PPP. The PPP contribution decreased $1.7 million to $4.1 million for the second quarter of 2021 compared to $5.8 million in the first quarter of 2021. Average portfolio loans ex-PPP decreased $123.1 million compared to the first quarter of 2021. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) decreased 31 basis points to 3.16% compared to 3.47% in the prior quarter. The decline in NIM (FTE) (non-GAAP) was due to a higher average cash balance (18 basis points), a lower PPP contribution (8 basis points) and lower loan yields (7 basis points). Partially offsetting these declines were lower costing liabilities which increased NIM (FTE) (Non-GAAP) by 5 basis points.

Asset Quality

The provision for credit losses decreased $0.5 million to $2.6 million for the second quarter of 2021 compared to $3.1 million in the first quarter of 2021. Net loan charge-offs were $7.5 million for the second quarter of 2021 compared to $5.8 million in the first quarter of 2021. Total nonperforming loans decreased $22.6 million to $112.6 million, or 1.61% of total loans, at June 30, 2021 compared to $135.2 million, or 1.88% of total loans at March 31, 2021. The allowance for credit losses was 1.56% of total portfolio loans as of June 30, 2021 compared to 1.60% at March 31, 2021. The allowance for credit losses was 1.64% of total portfolio ex-PPP loans at June 30, 2021 compared to 1.72% at March 31, 2021.

Noninterest Income and Expense

Noninterest income decreased $1.8 million to $15.4 million in the second quarter of 2021 compared to $17.2 million in the first quarter of 2021. Mortgage banking income decreased $2.6 million due to a lower volume of loans sold and a decrease in the mortgage servicing rights valuation. Debit and credit card fees were strong with a $0.6 million increase compared to the prior quarter.

Noninterest expense increased $0.2 million to $45.8 million for the second quarter of 2021 compared to $45.6 million in the first quarter of 2021. Salaries and employee benefits increased $1.2 million due to annual merit increases and higher incentives.

Financial Condition

Total assets increased $166.9 million to $9.5 billion at June 30, 2021 compared to $9.3 billion at March 31, 2021. Cash increased $313.8 million to $985.3 million at June 30, 2021 compared to March 31, 2021 due to PPP forgiveness and an increase in deposits as a result of stimulus programs. Total portfolio loans decreased $175.8 million compared to March 31, 2021. PPP originations were $31.1 million and PPP forgiveness was $194.2 million during the second quarter of 2021. Loan activity continues to be impacted by the pandemic. Deposits increased $139.2 million with a favorable mix of higher deposits across all categories except certificates of deposits. S&T continues to maintain a strong capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S&T declared a $0.28 per share cash dividend on July 19, 2021. This is unchanged from the same period in the prior year. The dividend is payable August 19, 2021 to shareholders of record on August 5, 2021.

Conference Call

S&T will host its second quarter 2021 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 22, 2021. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “2nd Quarter 2021 Earnings Conference Call” and follow the instructions. After the live presentation, the webcast will be archived on this website for at least 90 days. A replay of the call will also be available until July 29, 2021, by dialing 1.877.481.4010; the Conference ID is 41690.

About S
&
T Bancorp, Inc. and S
&
T Bank

S&T Bancorp, Inc. is a $9.5 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank was established in 1902 and operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. For more information visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram, and LinkedIn.

This information contains or incorporates statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting S

&

T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result”, “expect”, “anticipate”, “estimate”, “forecast”, “project”, “intend”, ” believe”, “assume”, “strategy”, “trend”, “plan”, “outlook”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “comfortable”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; the transition from LIBOR as a reference rate; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; changes in accounting policies, practices, or guidance, for example, our adoption of CECL; legislation affecting the financial services industry as a whole, and S

&

T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions, including DNB, cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; our ability to successfully manage our CEO transition; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the coronavirus (“COVID-19”) pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; our participation in the Paycheck Protection Program; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses.

Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2020, including Part I, Item 1A-“Risk Factors” and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

	2021	2021	2020
	Second	First	Second
(dollars in thousands, except per share data)	Quarter	Quarter	Quarter
INTEREST AND DIVIDEND INCOME
Loans, including fees	$66,942	$70,232	$75,498
Investment Securities:
Taxable	3,793	3,563	3,791
Tax-exempt	690	813	959
Dividends	152	173	231
Total Interest and Dividend Income	71,577	74,781	80,479

INTEREST EXPENSE
Deposits	2,652	3,481	9,227
Borrowings and junior subordinated debt securities	621	641	1,104
Total Interest Expense	3,273	4,122	10,331

NET INTEREST INCOME	68,304	70,659	70,148
Provision for credit losses	2,561	3,137	86,759
Net Interest Income After Provision for Credit Losses	65,743	67,522	(16,611)

NONINTEREST INCOME
Net gain on sale of securities	29	—	142
Debit and credit card	4,744	4,162	3,612
Service charges on deposit accounts	3,642	3,474	2,805
Wealth management	3,167	2,944	2,585
Mortgage banking	1,734	4,310	2,623
Commercial loan swap income	299	95	945
Other	1,809	2,251	2,511
Total Noninterest Income	15,424	17,236	15,224

NONINTEREST EXPENSE
Salaries and employee benefits	24,515	23,327	21,419
Data processing and information technology	3,787	4,225	3,585
Occupancy	3,434	3,827	3,437
Furniture, equipment and software	2,402	2,640	3,006
Other taxes	1,832	1,436	1,604
Professional services and legal	1,637	1,531	1,932
Marketing	996	1,322	979
FDIC insurance	924	1,046	1,048
Other	6,302	6,226	6,468
Total Noninterest Expense	45,829	45,580	43,478
Income (Loss) Before Taxes	35,338	39,178	(44,865)
Income tax expense (benefit)	6,971	7,276	(11,793)
Net Income (Loss)	$28,367	$31,902	($33,072)

Per Share Data
Shares outstanding at end of period	39,345,719	39,268,359	39,263,460
Average shares outstanding – diluted	39,048,971	39,021,208	39,013,161
Diluted earnings (loss) per share	$0.72	$0.81	($0.85)
Dividends declared per share	$0.28	$0.28	$0.28
Dividend yield (annualized)	3.58%	3.34%	4.78%
Dividends paid to net income	38.74%	34.40%	NM
Book value	$30.21	$29.75	$28.93
Tangible book value⁽¹⁾	$20.57	$20.08	$19.22
Market value	$31.30	$33.50	$23.45
Profitability Ratios (Annualized)
Return on average assets	1.21%	1.42%	(1.41)%
Return on average shareholders’ equity	9.65%	11.15%	(11.17)%
Return on average tangible shareholders’ equity ⁽²⁾	14.41%	16.78%	(16.19)%
Pre-tax pre-provision income / average assets⁽³⁾	1.61%	1.89%	1.79%
Efficiency ratio (FTE)⁽⁴⁾	54.37%	51.47%	50.51%
NM – Not Meaningful

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

	Six Months Ended June 30,
(dollars in thousands, except per share data)	2021	2020
INTEREST AND DIVIDEND INCOME
Loans, including fees	$137,174	$157,549
Investment Securities:
Taxable	7,356	8,074
Tax-exempt	1,503	1,762
Dividends	325	684
Total Interest and Dividend Income	146,358	168,069

INTEREST EXPENSE
Deposits	6,133	24,565
Borrowings and junior subordinated debt securities	1,263	3,320
Total Interest Expense	7,396	27,885

NET INTEREST INCOME	138,962	140,184
Provision for credit losses	5,699	106,809
Net Interest Income After Provision for Credit Losses	133,263	33,375

NONINTEREST INCOME
Net gain on sale of securities	29	142
Debit and credit card	8,906	3,859
Service charges on deposit accounts	7,116	6,814
Wealth management	6,111	4,949
Mortgage banking	6,044	7,093
Commercial loan swap income	393	3,429
Other	4,062	1,341
Total Noninterest Income	32,661	27,627

NONINTEREST EXPENSE
Salaries and employee benefits	47,842	42,754
Data processing and information technology	8,012	7,453
Occupancy	7,261	7,202
Furniture, equipment and software	5,042	5,525
Other taxes	3,268	3,205
Professional services and legal	3,168	2,980
Marketing	2,318	2,090
FDIC insurance	1,970	1,818
Merger related expenses	—	2,342
Other	12,528	14,500
Total Noninterest Expense	91,409	89,869

Income (Loss) Before Taxes	74,515	(28,867)
Income tax expense (benefit)	14,247	(9,026)

Net Income (Loss)	$60,268	($19,841)

Per Share Data
Average shares outstanding – diluted	39,034,808	39,142,351
Diluted earnings (loss) per share	$1.54	($0.51)
Dividends declared per share	$0.56	$0.56
Dividends paid to net income	36.44%	NM

Profitability Ratios (annualized)
Return on average assets	1.31%	(0.44)%
Return on average shareholders’ equity	10.39%	(3.35)%
Return on average tangible shareholders’ equity ⁽⁵⁾	15.57%	(4.68)%
Pre-tax pre-provision income / average assets ⁽⁶⁾	1.75%	1.72%
Efficiency ratio (FTE) ⁽⁷⁾	52.89%	51.68%
NM – Not Meaningful

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

	2021	2021	2020
	Second	First	Second
(dollars in thousands)	Quarter	Quarter	Quarter
ASSETS
Cash and due from banks, including interest-bearing deposits	$985,278	$671,429	$351,365
Securities, at fair value	840,375	817,299	804,366
Loans held for sale	7,648	12,794	14,259
Commercial loans:
Commercial real estate	3,246,533	3,284,555	3,345,513
Commercial and industrial	1,774,358	1,931,711	2,140,355
Commercial construction	478,153	460,417	459,264
Total Commercial Loans	5,499,044	5,676,683	5,945,132
Consumer loans:
Residential mortgage	859,329	881,245	971,023
Home equity	547,658	530,350	539,519
Installment and other consumer	88,210	80,646	79,816
Consumer construction	13,110	14,244	13,068
Total Consumer Loans	1,508,307	1,506,485	1,603,426
Total Portfolio Loans	7,007,351	7,183,168	7,548,558
Allowance for credit losses	(109,636)	(115,101)	(114,609)
Total Portfolio Loans, Net	6,897,715	7,068,067	7,433,949
Federal Home Loan Bank and other restricted stock, at cost	10,106	12,199	15,151
Goodwill	373,424	373,424	373,289
Other assets	381,286	373,767	481,917
Total Assets	$9,495,832	$9,328,979	$9,474,296

LIABILITIES
Deposits:
Noninterest-bearing demand	$2,668,833	$2,539,594	$2,250,958
Interest-bearing demand	979,300	976,225	1,055,261
Money market	2,047,254	2,002,857	2,121,588
Savings	1,050,256	1,036,927	916,268
Certificates of deposit	1,269,621	1,320,425	1,523,841
Total Deposits	8,015,264	7,876,028	7,867,916

Borrowings:
Securities sold under repurchase agreements	68,587	67,417	92,159
Short-term borrowings	—	—	84,541
Long-term borrowings	22,969	23,282	49,489
Junior subordinated debt securities	64,113	64,097	64,053
Total Borrowings	155,669	154,796	290,242
Other liabilities	136,166	129,877	180,361
Total Liabilities	8,307,099	8,160,701	8,338,519

SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity	1,188,733	1,168,278	1,135,777
Total Liabilities and Shareholders’ Equity	$9,495,832	$9,328,979	$9,474,296

Capitalization Ratios
Shareholders’ equity / assets	12.52%	12.52%	11.99%
Tangible common equity / tangible assets⁽⁸⁾	8.88%	8.81%	8.30%
Tier 1 leverage ratio	9.52%	9.71%	8.89%
Common equity tier 1 capital	11.98%	11.84%	10.70%
Risk-based capital – tier 1	12.40%	12.26%	11.10%
Risk-based capital – total	14.00%	13.93%	12.74%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

	2021		2021		2020
	Second		First		Second
(dollars in thousands)	Quarter		Quarter		Quarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks	$785,465	0.09%	$302,219	0.09%	$163,019	0.08%
Securities, at fair value	826,861	2.19%	782,118	2.34%	785,229	2.56%
Loans held for sale	4,353	3.01%	6,360	2.83%	9,931	3.08%
Commercial real estate	3,251,894	3.69%	3,253,641	3.76%	3,389,616	4.23%
Commercial and industrial	1,890,538	3.90%	1,957,459	4.31%	2,200,148	3.61%
Commercial construction	462,928	3.34%	485,269	3.37%	430,912	3.75%
Total Commercial Loans	5,605,359	3.73%	5,696,369	3.91%	6,020,676	3.97%
Residential mortgage	863,254	4.17%	897,427	4.22%	976,916	4.20%
Home equity	535,933	3.50%	532,708	3.65%	543,770	3.69%
Installment and other consumer	84,259	6.05%	79,907	6.33%	79,944	6.34%
Consumer construction	13,264	6.39%	15,908	4.79%	12,758	4.58%
Total Consumer Loans	1,496,710	4.06%	1,525,950	4.14%	1,613,388	4.14%
Total Portfolio Loans	7,102,069	3.80%	7,222,319	3.96%	7,634,064	4.00%
Total Loans	7,106,422	3.80%	7,228,679	3.96%	7,643,995	4.00%
Federal Home Loan Bank and other restricted stock	10,529	4.51%	11,242	4.94%	19,709	3.75%
Total Interest-earning Assets	8,729,277	3.31%	8,324,259	3.67%	8,611,952	3.80%
Noninterest-earning assets	704,635		756,273		817,767
Total Assets	$9,433,911		$9,080,532		$9,429,719

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing demand	$998,134	0.09%	$895,891	0.10%	$1,033,905	0.24%
Money market	2,037,976	0.18%	1,968,779	0.19%	2,076,483	0.50%
Savings	1,044,899	0.03%	995,228	0.06%	887,357	0.07%
Certificates of deposit	1,291,194	0.45%	1,344,604	0.65%	1,560,885	1.51%
Total Interest-bearing Deposits	5,372,203	0.20%	5,204,503	0.27%	5,558,630	0.67%
Securities sold under repurchase agreements	67,838	0.10%	64,653	0.15%	85,302	0.25%
Short-term borrowings	0	—%	25,556	0.19%	178,273	0.38%
Long-term borrowings	23,113	2.01%	23,471	2.00%	49,774	2.53%
Junior subordinated debt securities	64,103	3.06%	64,088	3.09%	64,044	3.58%
Total Borrowings	155,054	1.61%	177,768	1.46%	377,393	1.18%
Total Interest-bearing Liabilities	5,527,256	0.24%	5,382,271	0.31%	5,936,023	0.70%
Noninterest-bearing liabilities	2,727,653		2,538,149		2,302,676
Shareholders’ equity	1,179,002		1,160,113		1,191,020
Total Liabilities and Shareholders’ Equity	$9,433,911		$9,080,532		$9,429,719

Net Interest Margin⁽⁹⁾		3.16%		3.47%		3.31%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

	Six Months Ended June 30,
(dollars in thousands)	2021		2020
Net Interest Margin (FTE) (YTD Averages)
ASSETS
Interest-bearing deposits with banks	$545,177	0.09%	$131,332	0.59%
Securities, at fair value	804,613	2.26%	786,043	2.55%
Loans held for sale	5,351	2.90%	5,899	3.19%
Commercial real estate	3,252,763	3.72%	3,399,150	4.48%
Commercial and industrial	1,923,813	4.10%	1,975,913	4.02%
Commercial construction	474,037	3.36%	408,638	4.19%
Total Commercial Loans	5,650,613	3.82%	5,783,701	4.30%
Residential mortgage	880,246	4.20%	983,891	4.19%
Home equity	534,329	3.58%	541,981	4.26%
Installment and other consumer	82,095	6.19%	79,812	6.67%
Consumer construction	14,578	5.52%	11,633	4.59%
Total Consumer Loans	1,511,249	4.10%	1,617,317	4.34%
Total Portfolio Loans	7,161,862	3.88%	7,401,018	4.31%
Total Loans	7,167,213	3.88%	7,406,917	4.31%
Federal Home Loan Bank and other restricted stock	10,884	4.73%	21,655	5.47%
Total Interest-earning Assets	8,527,887	3.49%	8,345,947	4.09%
Noninterest-earning assets	730,117		752,576
Total Assets	$9,258,003		$9,098,523

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing demand	$947,295	0.10%	$987,968	0.41%
Money market	2,003,569	0.18%	2,035,124	0.88%
Savings	1,020,201	0.04%	859,171	0.15%
Certificates of deposit	1,317,751	0.55%	1,581,104	1.66%
Total Interest-bearing deposits	5,288,816	0.23%	5,463,367	0.90%
Securities sold under repurchase agreements	66,254	0.13%	58,046	0.33%
Short-term borrowings	12,707	0.19%	232,319	1.14%
Long-term borrowings	23,291	2.01%	50,809	2.53%
Junior subordinated debt securities	64,095	3.07%	64,120	3.99%
Total Borrowings	166,348	1.53%	405,294	1.65%
Total Interest-bearing Liabilities	5,455,164	0.27%	5,868,661	0.96%
Noninterest-bearing liabilities	2,633,219		2,039,565
Shareholders’ equity	1,169,620		1,190,297
Total Liabilities and Shareholders’ Equity	$9,258,003		$9,098,523

Net Interest Margin ⁽¹⁰⁾		3.31%		3.42%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

	2021		2021		2020
	Second		First		Second
(dollars in thousands)	Quarter		Quarter		Quarter
Nonperforming Loans (NPL)
Commercial loans:		% NPL		% NPL		% NPL
Commercial real estate	$82,050	2.53%	$98,606	3.00%	$61,643	1.84%
Commercial and industrial	16,997	0.96%	18,145	0.94%	8,484	0.40%
Commercial construction	384	0.08%	384	0.08%	1,504	0.33%
Commercial Loan Held for Sale	—	—%	2,798	NM	—	—%
Total Nonperforming Commercial Loans	99,431	1.81%	119,933	2.11%	71,631	1.20%
Consumer loans:
Residential mortgage	9,917	1.15%	11,737	1.33%	14,649	1.51%
Home equity	3,150	0.58%	3,441	0.65%	3,814	0.71%
Installment and other consumer	121	0.14%	100	0.12%	19	0.02%
Total Nonperforming Consumer Loans	13,188	0.87%	15,278	1.01%	18,482	1.14%
Total Nonperforming Loans	$112,619	1.61%	$135,211	1.88%	$90,113	1.19%
NM-Not Meaningful

	2021	2021	2020
	Second	First	Second
(dollars in thousands)	Quarter	Quarter	Quarter
Loan Charge-offs (Recoveries)
Charge-offs	$8,737	$6,532	$63,304
Recoveries	(1,264)	(721)	(231)
Net Loan Charge-offs (Recoveries)	$7,473	$5,812	$63,072

Net Loan Charge-offs (Recoveries)
Commercial loans:
Customer fraud	$—	$—	$58,671
Commercial real estate	6,595	698	5,588
Commercial and industrial	795	4,913	3,060
Commercial construction	(2)	(1)	(19)
Total Commercial Loan Charge-offs (Recoveries)	7,388	5,610	67,300
Consumer loans:
Residential mortgage	(57)	71	74
Home equity	10	232	16
Installment and other consumer	132	(102)	682
Total Consumer Loan Charge-offs (Recoveries)	85	202	772
Total Net Loan Charge-offs (Recoveries)	$7,473	$5,812	$68,072

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

	Six Months Ended June 30,
(dollars in thousands)	2021	2020
Loan Charge-offs (Recoveries)
Charge-offs	$15,270	$79,749
Recoveries	(1,985)	(520)
Net Loan Charge-offs (Recoveries)	$13,285	$79,229

Net Loan Charge-offs (Recoveries)
Commercial loans:
Customer fraud	$—	$58,671
Commercial real estate	7,293	6,016
Commercial and industrial	5,708	13,325
Commercial construction	(3)	(21)
Total Commercial Loan Charge-offs/(Recoveries)	12,998	77,991
Consumer loans:
Residential mortgage	15	93
Home equity	242	97
Installment and other consumer	30	1,048
Total Consumer Loan Charge-offs (Recoveries)	287	1,238
Total Net Loan Charge-offs (Recoveries)	$13,285	$79,229

	2021	2021	2020
	Second	First	Second
(dollars in thousands)	Quarter	Quarter	Quarter
Asset Quality Data
Nonperforming loans	$112,619	$135,211	$90,113
OREO	1,145	1,620	2,740
Nonperforming assets	113,764	136,831	92,853
Troubled debt restructurings (nonaccruing)	20,650	29,983	31,755
Troubled debt restructurings (accruing)	14,321	17,916	15,536
Total troubled debt restructurings	34,971	47,899	47,291
Nonperforming loans / total loans	1.61%	1.88%	1.19%
Nonperforming assets / total loans plus OREO	1.62%	1.90%	1.23%
Allowance for credit losses / total portfolio loans	1.56%	1.60%	1.52%
Allowance for credit losses / total portfolio loans excluding PPP	1.64%	1.72%	NA
Allowance for credit losses / nonperforming loans	97%	85%	127%
Net loan charge-offs (recoveries)	$7,473	$5,812	$68,072
Net loan charge-offs (recoveries)(annualized) / average loans	0.43%	0.33%	3.58%
NA = Not Applicable

	Six Months Ended June 30,
(dollars in thousands)	2021	2020
Asset Quality Data
Net loan charge-offs (recoveries)	$13,285	$79,229
Net loan charge-offs (recoveries)(annualized) / average loans	0.37%	2.15%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:

	2021	2021	2020
	Second	First	Second
(dollars in thousands)	Quarter	Quarter	Quarter

*⁽¹⁾* Tangible Book Value (non-GAAP)
Total shareholders’ equity	$1,188,733	$1,168,278	$1,135,777
Less: goodwill and other intangible assets, net of deferred tax liability	(379,563)	(379,911)	(380,986)
Tangible common equity (non-GAAP)	$809,170	$788,367	$754,791
Common shares outstanding	39,346	39,268	39,263
Tangible book value (non-GAAP)	$20.57	$20.08	$19.22

*⁽²⁾* Return on Average Tangible Shareholders’ Equity (non-GAAP)
Net income (loss) (annualized)	$113,778	$129,378	($133,016)
Plus: amortization of intangibles (annualized), net of tax	1,395	1,464	2,072
Net income before amortization of intangibles (annualized)	$115,173	$130,842	($130,944)

Average total shareholders’ equity	$1,179,002	$1,160,113	$1,191,020
Less: average goodwill and other intangible assets, net of deferred tax liability	(379,784)	(380,144)	(382,081)
Average tangible equity (non-GAAP)	$799,218	$779,969	$808,939
Return on average tangible shareholders’ equity (non-GAAP)	14.41%	16.78%	(16.19)%

*⁽³⁾* PTPP / Average Assets (non-GAAP)
Income (loss) before taxes	$35,338	$39,178	($44,865)
Plus: Provision for credit losses	2,561	3,137	86,759
Total	37,899	42,315	41,894
Total (annualized) (non-GAAP)	$152,012	$171,611	$168,497
Average assets	$9,433,911	$9,080,532	$9,429,719
PTPP / Average Assets (non-GAAP)	1.61%	1.89%	1.79%

*⁽⁴⁾* Efficiency Ratio (non-GAAP)
Noninterest expense	$45,829	$45,580	$43,478
Net interest income per consolidated statements of net income	$68,304	$70,659	$70,148
Plus: taxable equivalent adjustment	585	664	847
Net interest income (FTE) (non-GAAP)	68,889	71,323	70,995
Noninterest income	15,424	17,236	15,224
Less: net (gains) losses on sale of securities	(29)	—	(142)
Net interest income (FTE) (non-GAAP) plus noninterest income	$84,284	$88,560	$86,077
Efficiency ratio (non-GAAP)	54.37%	51.47%	50.51%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

	Six Months Ended June 30,
(dollars in thousands)	2021	2020

*⁽⁵⁾* Return on Average Tangible Shareholders’ Equity (non-GAAP)
Net income (loss) (annualized)	$121,535	($39,900)
Plus: amortization of intangibles (annualized), net of tax	1,429	2,040
Net income before amortization of intangibles (annualized)	$122,964	($37,860)

Average total shareholders’ equity	$1,169,620	$1,190,297
Less: average goodwill and other intangible assets, net of deferred tax liability	(379,963)	(380,935)
Average tangible equity (non-GAAP)	$789,657	$809,362
Return on average tangible shareholders’ equity (non-GAAP)	15.57%	(4.68)%

*⁽⁶⁾* PTPP / Average Assets (non-GAAP)
Income (loss) before taxes	$74,515	($28,867)
Plus: Provision for credit losses	5,699	106,809
Total	80,214	77,942
Total (annualized) (non-GAAP)	$161,758	$156,741
Average assets	$9,258,003	$9,098,523
PTPP / Average Assets (non-GAAP)	1.75%	1.72%

*⁽⁷⁾* Efficiency Ratio (non-GAAP)
Noninterest expense	$91,409	$89,869
Less: merger related expenses	—	(2,342)
Noninterest expense excluding nonrecurring items	$91,409	$87,527

Net interest income per consolidated statements of net income	$138,962	$140,184
Plus: taxable equivalent adjustment	1,249	1,697
Net interest income (FTE) (non-GAAP)	140,211	141,881
Noninterest income	32,661	27,627
Less: net (gains) losses on sale of securities	(29)	(142)
Net interest income (FTE) (non-GAAP) plus noninterest income	$172,843	$169,366
Efficiency ratio (non-GAAP)	52.89%	51.68%

*⁽¹⁰⁾* Net Interest Margin Rate (FTE) (non-GAAP)
Interest income and dividend income	$146,358	$168,069
Less: interest expense	(7,396)	(27,885)
Net interest income per consolidated statements of net income	138,962	140,184
Plus: taxable equivalent adjustment	1,249	1,697
Net interest income (FTE) (non-GAAP)	$140,211	$141,881
Net interest income (FTE) (annualized)	$282,746	$285,321
Average interest-earning assets	$8,527,886	$8,345,947
Net interest margin – (FTE) (non-GAAP)	3.31%	3.42%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:

	2021	2021	2020
	Second	First	Second
(dollars in thousands)	Quarter	Quarter	Quarter

*⁽⁸⁾* Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders’ equity	$1,188,733	$1,168,278	$1,135,777
Less: goodwill and other intangible assets, net of deferred tax liability	(379,563)	(379,911)	(380,986)
Tangible common equity (non-GAAP)	$809,170	$788,367	$754,791

Total assets	$9,495,832	$9,328,979	$9,474,296
Less: goodwill and other intangible assets, net of deferred tax liability	(379,563)	(379,911)	(380,986)
Tangible assets (non-GAAP)	$9,116,268	$8,949,068	$9,093,310
Tangible common equity to tangible assets (non-GAAP)	8.88%	8.81%	8.30%

*⁽⁹⁾* Net Interest Margin Rate (FTE) (non-GAAP)
Interest income and dividend income	$71,577	$74,781	$80,479
Less: interest expense	(3,273)	(4,122)	(10,331)
Net interest income per consolidated statements of net income	68,304	70,659	70,148
Plus: taxable equivalent adjustment	585	664	847
Net interest income (FTE) (non-GAAP)	$68,889	$71,323	$70,995
Net interest income (FTE) (annualized)	$276,313	$289,253	$285,540
Average interest- earning assets	$8,729,277	$8,324,259	$8,611,952
Net interest margin (FTE) (non-GAAP)	3.16%	3.47%	3.31%

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SOURCE S&T Bancorp, Inc.

July 22, 2021 7:34 am

Neptune Launches Forest Remedies Plant-Based Omega 3-6-9 Supplements

PR Newswire

LAVAL, QC, July 22, 2021 /PRNewswire/ – Neptune Wellness Solutions Inc. (“Neptune” or the “Company”) (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated health and wellness company focused on plant-based, sustainable and purpose-driven lifestyle brands, today announced the launch of Forest Remedies’ plant-based Multi Omega 3-6-9 gummies and soft gels.

Forest Remedies’ new plant-based multi-omega soft gels and gummies use all natural oil from Ahiflower® grown in the United Kingdom, which is a much more sustainable and eco-friendly source of omegas 3, 6, and 9 in contrast to fish or krill oil,. In fact, one acre of Ahiflower provides the same amount of oil as 320,000 anchovies. The use of Ahiflower oil means Forest Remedies’ new multi-omega gummies and soft gels do not contribute to the overfishing of marine life, which has become a global ecological disaster over the past 50 years and led to an 80% reduction in the Antarctic’s krill population since the 1970s.

“Forest Remedies’ new multi-omega gummies and soft gels, made from Ahiflower seed oil instead of fish oil, is yet another example of Neptune’s commitment to manufacturing and selling plant-based, sustainable and eco-friendly health and wellness products,” said Michael Cammarata, President and Chief Executive Officer of Neptune Wellness. “We are revolutionizing supplement packaging with a recyclable and compostable outer tube, as well as a compostable and biodegradable interior bag. The product is vegan and our plant-based sourcing does not contribute to the overfishing of marine life. I could not be more proud of our efforts to formulate a unique, plant-based dietary supplement that is good for you and good for the planet.”

Forest Remedies soft gels and gummies are available in a base Multi Omega 3-6-9 formula, as well as an Elderberry Immune formula made with elderberry extract. The gummies are available in Orange Blossom and Fresh Raspberry flavors. Forest Remedies Multi Omega 3-6-9 gummies and soft gels are vegan, gluten free, non-GMO, and made in the U.S.A. with no fishy aftertaste like many fish oil-based omegas. Additionally, the Ahiflower oil is clinically proven to be up to four times more effective than flaxseed oil at increasing EPA (eicosapentaenoic acid).

Forest Remedies soft gels and gummies are available to consumers on-line today and can be purchased by visiting the Forest Remedies website at www.forestremedies.com. New users can sign up for the Forest Remedies newsletter and receive 20% off their first purchase.

About Neptune Wellness

Headquartered in Laval, Quebec, Neptune is a diversified health and wellness company with a mission to redefine health and wellness. Neptune is focused on building a portfolio of high quality, affordable consumer products in response to long-term secular trends and market demand for natural, plant-based, sustainable and purpose-driven lifestyle brands. The Company utilizes a highly flexible, cost-efficient manufacturing and supply chain infrastructure that can be scaled to quickly adapt to consumer demand and bring new products to market through its mass retail partners and e-commerce channels. For additional information, please visit: https://neptunewellness.com/.

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SOURCE Neptune Wellness Solutions Inc.

July 22, 2021 7:33 am

Axon to Release Second Quarter 2021 Earnings on August 5, 2021

PR Newswire

SCOTTSDALE, Ariz., July 22, 2021 /PRNewswire/ — Axon (Nasdaq: AXON), the global leader in connected public safety technologies, today announced that it will report second quarter 2021 financial results after the market closes on Thursday, August 5, 2021. Axon executivesRick Smith, CEO and founder; Luke Larson, president; and Jawad Ahsan, CFO; will host a live Zoom video webinar to discuss the company’s financial results at 5 p.m. ET that same day.

The live webinar to discuss financial results, followed by Q&A, will be linked from Axon’s investor relations website at https://investor.axon.com. An archived replay will be available after the call ends.

Upcoming Conference Participation

The Company also announced that members of Axon management will participate in the following conferences. If applicable, events will be webcast live and archived on Axon’s investor relations website at https://investor.axon.com.

Northcoast Research Industrial and Business Services Management Virtual Forum on Tuesday, August 10, 2021
11th Annual Needham Virtual SaaS 1×1 Conference on Thursday, November 18, 2021

About Axon

Axon is a network of devices, apps and people that helps public safety personnel become smarter and safer. With a mission of protecting life, our technologies give customers the confidence, focus and time they need to keep their communities safe. Our products impact every aspect of a public safety officer’s day-to-day experience with the goal of helping everyone get home safe.

We work hard for those who put themselves in harm’s way for all of us. To date, more than 253,000 lives and countless dollars have been saved with the Axon network of devices, apps and people. Learn more at www.axon.com or by calling (800) 978-2737. Axon is a global company with headquarters in Scottsdale, Ariz. and global software engineering hub in Seattle, Wash., as well as additional offices in Australia, Canada, Finland, Vietnam, the UK and the Netherlands.

Facebook is a trademark of Facebook, Inc., Twitter is a trademark of Twitter, Inc. and Zoom is a trademark of Zoom Video Communications, Inc. Axon and the “Delta Logo” are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.

Follow Axon here:

Axon on Twitter: https://twitter.com/axon_us
Axon on Facebook: https://www.facebook.com/Axon.ProtectLife/

Note to Investors

Please visit http://investor.axon.com, https://www.axon.com/press, www.twitter.com/axon_us and https://www.facebook.com/Axon.ProtectLife/ where Axon discloses information about the company, its financial information and its business.

CONTACT:
Investor Relations
Axon Enterprise, Inc.
[email protected]

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SOURCE Axon

July 22, 2021 7:33 am

Safehold Reports Second Quarter 2021 Results

PR Newswire

NEW YORK, July 22, 2021 /PRNewswire/ — Safehold Inc. (NYSE: SAFE) reported results for the second quarter 2021.

Highlights from the second quarter earnings announcement include:

— Revenue of $44.2 million

— Net income of $14.7 million

— Earnings per share of $0.28

—
$222 million of new ground lease investments⁽¹⁾

—
$374 million of UCA growth

—
$400 million initial unsecured bond offering

— Launched Ground Lease Plus, a new Safehold product that meets customers’ demands earlier in the life cycle of an asset during the pre-development stage

“During the second quarter, Safehold grew its portfolio by over $200 million, while innovatively expanding its suite of products to capture pre-development opportunities,” said Jay Sugarman, Chairman and Chief Executive Officer. “With ample liquidity on hand, a robust pipeline, and a lower cost of capital, Safehold is well positioned to continue to drive growth and deliver modern ground lease capital to a broader customer base.”

SAFE published a presentation detailing these results which can be found on its website, www.safeholdinc.com in the “Investor Relations” section.

The Company will host an earnings conference call reviewing this presentation beginning at 10:00 a.m. ET. This conference call will be broadcast live and can be accessed by all interested parties through Safehold’s website and by using the dial-in information listed below:

Dial-In:	877.226.8189
International:	409.207.6980
Access Code:	1455358

A replay of the call will be archived on the Company’s website. Alternatively, the replay can be accessed via dial-in from 1:00 p.m. ET on July 22, 2021 through 12:00 a.m. ET on August 5, 2021 by calling:

Replay:	866.207.1041
International:	402.970.0847
Access Code:	7260006

About Safehold:

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Through its modern ground lease capital solution, Safehold helps owners of high quality multifamily, office, industrial, hospitality and mixed-use properties in major markets throughout the United States generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT) and is managed by its largest shareholder, iStar Inc., seeks to deliver safe, growing income and long-term capital appreciation to its shareholders. Additional information on Safehold is available on its website at www.safeholdinc.com.

Company Contact:
Jason Fooks
Senior Vice President
Investor Relations & Marketing
T 212.930.9400
E [email protected]

(1) Investments in Q2 ’21 include $12m of forward commitments that have not yet been funded. There can be no assurance that Safehold will complete these transactions.

View original content:https://www.prnewswire.com/news-releases/safehold-reports-second-quarter-2021-results-301339188.html

SOURCE Safehold

July 22, 2021 7:33 am

Great Panther Announces High-Grade Intercepts from Tucano’s Urucum North Deposit

PR Newswire

TSX: GPR | NYSE American: GPL

Exploration drilling has delineated continuity in the underground zone and potential for expanding the open pit

VANCOUVER, BC, July 22, 2021 /PRNewswire/ – Great Panther Mining Limited (TSX: GPR) (NYSE-A: GPL) (“Great Panther” or the “Company”), a growing gold and silver producer focused on the Americas, announces drill results for the Urucum North (“URN”) deposit located at its wholly-owned Tucano mine in Brazil.

Rob Henderson, Great Panther’s President & CEO commented: “We are very excited with the exploration results we are seeing from Tucano, which demonstrate the potential for additional near-term gold production. The high grades discovered at Urucum North are encouraging, and we are expediting studies to support a decision to initiate underground production to supplement the open pit feed to the mill. Drilling also identified shallow high-grade mineralization, which we believe will extend the Urucum North pit.”

The URN underground project envisions an estimated 40,000 to 50,000 gold ounce (“Au oz”) per year underground mine planned to extract ore from below the current URN open pit. In late 2020, Great Panther conducted additional drilling as part of a larger exploration program designed to update development studies to support a decision for the start-up of the underground project. The program is ongoing and significant drilling results to-date are presented below.

URN High-Grade Zone (Underground)

The URN High-Grade Zone 1 (HGZ1) lies less than 100 metres below the planned URN final pit shell. It is the shallowest high-grade zone defined in the mine plan. Nineteen holes were drilled within and along the up and down plunge extensions of HGZ1. Three of these are deep (i.e., +500 metres) drill holes completed to test the down plunge extension of this high-grade zone to demonstrate the down plunge continuity of the HGZ1 beyond the previous limits (see Figure 1). Key drill intersections from these holes include:

2.2 metres at 14.3g/t Au in 21URNDD005
2.6 metres at 6.3g/t Au in 21URNDD011
2.6 metres at 9.3g/t Au in 21URNDD015 and
3.1 metres at 4.1g/t Au also in 21URNDD015

Currently, the HGZ1 is approximately 500 metres long and remains open down plunge. Drill hole 21URNDD021 and 21URNDD024 are currently underway to test the extension.

URN Pit Extension to North

Twenty-six holes drilled between 2020 and 2021 (see Table 1) targeted shallow upper-level stopes defined in the URN underground project mine plan. These were identified for early production during ramp development. This additional drilling has delineated a near-surface zone of relatively high-grades with potential to incorporate the upper-level stopes into an extension of the URN open pit design.

Key highlights from drilling in this zone include:

2.4 metres @ 2.8g/t Au in 21URNDD020
2.4 metres @ 8.0g/t Au in 21URNDD018
1.8 metres @ 6.8g/t Au in 21URNDD017
4.7 metres @ 8.0g/t Au also in 21URNDD017
1.4 metres @ 5.2g/t Au in 21URNDD016
4.8 metres @ 3.8g/t Au also in 21URNDD016
6.2 metres @ 3.5g/t Au in 20URNDD010
1.3 metres @ 4.0g/t Au in 20URNDD006
2.8 metres @ 2.7g/t Au in 20URNDD012
1.1 metres @ 5.7g/t Au in 20URNDD002

The Company is conducting a mine planning trade-off evaluation between accessing this near-surface mineralization by extending the open pit or via underground stoping, as early ramp development in the current model will access this zone.

The Mine Trend

The drilling executed by Great Panther has improved our understanding of the high-grade zones at Tucano and the Company is applying this knowledge to the entire Tucano drilling database. Recent modelling of high-grade intersections along the 7-kilometre mine sequence indicates a repetition of high-grade zones with similar characteristics and similar controls, that have either been mined or are inferred from sparse drilling. This revised understanding will assist exploration efforts along the mine trend.

Full drill results are provided in the following table:

Hole Id	Target	Intercept	From	To	Est. Horiz.	Grade	Est. Horiz.
Hole Id	Target	(m)	(m)	(m)	Thickness (m)	(g/t Au)	gram*m Au
21URNDD001	Hole abandoned: re-drilled as 21URNDD002
21URNDD002	HGZ1 up-plunge	4.3	227.5	231.8	2.2	3.24	7.0
21URNDD003	Hole abandoned: re-drilled as 21URNDD004
21URNDD004	HGZ1 up-plunge	2.9	274	276.9	1.7	3.67	6.1
21URNDD004	HGZ1 up-plunge	3	342	345	1.7	3.29	5.7
21URNDD005	HGZ1 down- plunge	4.9	424	428.9	2.2	2.6	5.8
21URNDD005	HGZ1 down- plunge	6.2	480.8	487	2.8	14.26	40.1
21URNDD011	HGZ1 down- plunge	6.2	423	429.2	2.6	6.26	16.4
21URNDD012	HGZ1 up-plunge	6.5	173.3	179.8	2.4	2.09	5.1
21URNDD013	Hole abandoned: to be re-drilled
21URNDD014	HGZ1 up-plunge	2.75	286.8	289.5	1.5	6.19	9.0
21URNDD014	HGZ1 up-plunge	2	303	305	1.1	5.21	5.5
21URNDD015	HGZ1 down- plunge	6.05	479.6	485.6	2.6	9.34	23.9
21URNDD015	HGZ1 down- plunge	7.4	549.6	557	3.1	4.14	12.9
21URNDD016	URN Extension	2.35	206.3	208.7	1.4	5.21	7.4
21URNDD016	URN Extension	8	235.6	243.6	4.8	3.77	18.2
21URNDD017	URN Extension	3	214	217	1.8	6.83	12.6
21URNDD017	URN Extension	7.6	235	242.6	4.7	8.03	37.6
21URNDD018	URN Extension	4.8	201.2	206	2.4	8.02	19.2
21URNDD019	Hole abandoned: to be re-drilled
21URNDD020	URN Extension	4	220	224	2.4	2.82	6.8
21URNDD021	HGZ1 down-plunge	Hole currently in progress
21URNDD022	HGZ1 up-plunge	2	217	219	1.03007615	9.84	10.1
21URNDD023	Hole abandoned: wedge of 21URNDD21
21URNDD024	HGZ1 down- plunge	Hole currently in progress
20URNDD002	URN Extension	1.9	217	218.9	1.1	5.74	6.6
20URNDD002	URN Extension	4	241	245	2.4	2.13	5.1
20URNDD003	URN Extension	6.45	354	360.5	2.7	3.55	9.7
20URNDD004	URN Extension	3	282.6	285.6	1.5	3.03	4.5
20URNDD006	URN Extension	9.7	255.4	265.1	6.2	5.99	37.3
20URNDD006	URN Extension	2	279	281	1.3	4.01	5.2
20URNDD008	URN Extension	3.1	234.1	237.2	2.0	2.61	5.2
20URNDD009	URN Extension	8.4	313.7	322.1	3.8	6.56	25.0
20URNDD009	URN Extension	2	376	378	0.9	3.55	3.2
20URNDD010	URN Extension	11	247	258	6.2	3.52	21.7
20URNDD011	URN Extension	4.8	229.6	234.4	2.8	2.02	5.6
20URNDD011	URN Extension	3.6	247.2	250.8	2.1	1.95	4.0
20URNDD012	URN Extension	4.95	227.6	232.5	2.8	2.71	7.7
20URNRC001	URN Extension	3	80	83	1.9	2.67	5.1
20URNRC001	URN Extension	6	83	89	3.9	2.38	9.2
20URNRC001	URN Extension	7	108	115	4.5	3.48	15.7
20URNRC001	URN Extension	1	118	119	0.6	14.48	9.3
* Significant results: +3.2 gram*meters (Est. horizontal thickness used).
Minimum cut-off: 1.6 g/t Au
Max internal dilution: 2 m
Estimated horizontal thickness calculated assuming vertical mineralization and inclination of drill hole.

Figure 1: Location of HGZ1 and significant drill intersections highlights in the 2020 / 2021 drill campaign.

Technical Disclosure and Qualified Persons

On behalf of Great Panther, Nicholas Winer, Fellow AusIMM and Vice President of Exploration, supervised the preparation of data for the drillholes included in this news release and Nicholas Winer, together with Fernando A. Cornejo, P. Eng. and Chief Operating Officer, approved this news release. Mr. Winer and Mr. Cornejo are non-independent Qualified Persons as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

The Qualified Person reviewed the Tucano QA/QC program. The QA/QC program for drill core includes the regular insertion of blanks, standards, and duplicates into sample batches, diligent monitoring of assay results, and necessary remedial actions. Resource drilling samples are first assayed at the Tucano onsite laboratory. All intervals with anomalous gold are submitted and re-analyzed by the Certified SGS Geosol laboratory in Belo Horizonte by 50 g fire-assay. All SGS Geosol assays, after diligent monitoring of QA/QC and necessary remedial actions, supersede the Tucano assay results in the database for Mineral Resource and Mineral Reserve grade estimation. QA/QC monitoring of the SGS laboratory also includes inter-laboratory checks on five percent of samples with the Certified ALS laboratory in Belo Horizonte. In addition to the data verification methodology described above, personal inspections of the Tucano property have also been completed.

For more information about the Company’s underground URN project, including its mine plan, see the Company’s Annual Information Form for the year ended December 31, 2020 and the technical report dated February 2, 2021 entitled “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapa State, Brazil” filed with the Canadian Securities Administrators available at www.sedar.com and with the Securities and Exchange Commission available at www.sec.gov.

ABOUT GREAT PANTHER

Great Panther is a growing gold and silver producer focused on the Americas. The Company owns a diversified portfolio of assets in Brazil, Mexico and Peru that includes three operating gold and silver mines, four exploration projects, and an advanced development project. Great Panther is actively exploring large land packages in highly prospective districts and is pursuing acquisition opportunities to complement its existing portfolio. Great Panther trades on the Toronto Stock Exchange trading under the symbol GPR, and on the NYSE American under the symbol GPL.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of Canadian securities laws (together, “forward-looking statements”). Such forward-looking statements may include, but are not limited to, statements regarding: (i) potential for additional near-term gold production resulting from exploration activities at in the URN pit; (ii) potential for a decision to initiate underground production to supplement the open pit feed to the mill and expectations around the timeline for the studies in support of such decision, (iii) potential for high-grade mineralization at the URN open pit to allow extension of the mineable area of the pit and the related expectations of continuity of the underground zone; (iv) the estimated potential of 40,000 to 50,000 gold ounce (“Au oz”) per year from the underground mine below the current URN open pit; and (v) whether Great Panther’s exploration program will support a decision for the start-up of the underground project.

These forward-looking statements reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: continued operations at Tucano in accordance with the Company’s mine plan, including the expectations regarding the likelihood of exploration results in the URN high-grade zone to justify a positive start-up decision for the URN underground mine project and/or extension of the URN open pit; the ability of the Company to successfully start-up and execute the URN underground mining project; the ongoing geotechnical control/stability of UCS and the Company’s ability to successful access the mineralization in the UCS pit without additional costs or interruption; continuation of operations without interruption, additional costs, workforce and supply shortages due to COVID-19 or any other reason; the accuracy of the Company’s Mineral Reserve and Mineral Resource estimates and the assumptions upon which they are based; ore grades and recoveries; prices for silver, gold, and base metals remaining as estimated; national and international transportation arrangements to deliver Tucano’s gold doré to international refineries continue to remain available, despite inherent risks due to COVID–19; international refineries that the Company uses continue to operate and refine the Company’s gold doré, and in a timely manner such that the Company is able to realize revenue from the sale of its refined metal in the timeframe anticipated, despite inherent risks due to COVID–19; capital, decommissioning and reclamation estimates; prices for energy inputs, labour, materials, supplies and services (including transportation) remaining as estimated; currency exchange rates remaining as estimated; all necessary permits, licenses and regulatory approvals for the Company’s operations are received in a timely manner and maintained, operations not being disrupted by issues such as pit-wall failures or instability, mechanical failures, labour disturbances or workforce shortages, illegal occupations or mining, seismic events, and adverse weather condition; assumption that the Company will be successful in resolving the legal claims that ban the use of cyanide in the Tucano processing; conditions in the financial markets; the ability to procure equipment and operating supplies and that there are no material unanticipated variations in the cost or availability of energy or supplies; and the Company’s ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political, regulatory, and social risks involving Great Panther’s operations in a foreign jurisdiction; developments with respect to COVID-19 that may impact the Company’s operations, including potential for further workforce and supply shortages, or future orders of federal governments to curtail or cease mining operations or voluntary shutdowns; the inherent risk that estimates of Mineral Reserves and Resources may not be accurate or that the assumptions upon which they are based are different than expected and accordingly that mine production will not be as estimated or predicted; the discontinuity of the Tucano ore body and mine selectivity may result in a risk that dilution and mining recovery estimates used in the Mineral Reserve estimation do not accurately reconcile with the Company’s ability to recover the tonnage, grade and metal content estimated in the Mineral Reserves; as the Company’s mines, including, but not limited to its Mexican operations, do not have established Mineral Reserves, except for Tucano and the Company may extend mine operations by mining material at Tucano that is classified as a Mineral Resource without completing a feasibility study demonstrating economic or technical viability, the Company faces higher risks that anticipated rates of production/recovery or estimates of costs will not be achieved; litigation risk, including a risk that the use of cyanide would be banned in respect of Tucano’s operations causing Tucano to have to cease operations if an alternative to cyanide treatment cannot be identified and implemented in a cost-effective way (of which there is no assurance); the potential for unexpected costs and expenses; fluctuations in metal prices; fluctuations in currency exchange rates; physical risks inherent in mining operations (including pit wall collapses, tailings storage facility failures, environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); potential of further instability or failure of walls of the UCS pit, which compromises a material part of the Mineral Reserves being accessed in 2021, there is no assurance that the Company will be able to continue mining and be able to access the UCS Mineral Reserves which may adversely impact the Company’s Mineral Reserve estimates, production guidance and future revenues, including the potential risk that the Mineral Reserves at UCS may not be accessible at all or that access may be dependent on further remedial work that might interrupt operations; there is no assurance that the Company will be able to identify or complete acquisition opportunities and other risks and uncertainties, including those described in respect of Great Panther, in its annual information form for the year ended December 31, 2020 and material change reports filed with the Canadian Securities Administrators available at www.sedar.com and reports on Form 40-F and Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov. There is no assurance that such forward-looking statements will prove accurate; results may vary materially from such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company has no intention to update forward-looking statements except as required by law.

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SOURCE Great Panther Mining Limited